In its fourth quarter shareholder letter, released on its website, Tesla said it anticipated this would represent a deepening of its partnership with Daimler. Previously, the two companies have partnered on battery and charging technology, deployed in the electric smart fortwo.

This new project will develop a full powertrain, including motor, gearbox, inverter and software, with Tesla expecting to start gaining revenue starting in the second quarter of this year. Production agreements and development services will be announced shortly, with an announcement from Daimler due shortly. A possible recipient for the new drivetrain is the recently-announced Mercedes-Benz Citan urban commercial vehicle.

Tesla is also working with Toyota to develop the powertrain for the US-market RAV4 EV, and said it expects to meet its first quarter development targets for the project. Earlier this month, the carmaker unveiled its third own-brand model, the Model X seven-seat SUV (pictured), which launches within the year.

‘Today, there are more Tesla-produced pure EV battery packs in the hands of Daimler and Toyota than Roadsters,’ the letter concluded. ‘This gives us a wealth of real-world data to compliment the nearly 20 million miles our customers have accumulated during Roadster driving.’