Tesla Motors Inc and Toyota Motor Corp said on Friday that they will together build and market an electric RAV4 sports utility vehicle by 2012.
Tesla shares rose as much as 6 percent in early trading on the Nasdaq.
The two companies signed an agreement last Thursday to build and market electric vehicles for the U.S. market but did not reveal that the RAV4 would be involved until today.
Two prototypes will be shown later this month, the companies said last week.
After spiking to $21.00, shares of Tesla were up 2.7 percent at percent on Friday morning at $20.43.
The company began public trading last month.
Toyota shares in Japan fell 1.3 percent on Friday. The market in Japan closed before the announcement.
(Reporting by Bernie Woodall, editing by Gerald E. McCormick)