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An Electric Smart Car?
Tesla Motors announced that it will supply electric battery packs and chargers to Daimler AG for an electric version of the Smart car.

The companies have been working together for more than a year, said Mike Donoughe, Tesla’s executive vice president for vehicle engineering.
The initial contract is for 1,000 vehicles, but Tesla said the deal could grow to tens of thousands.
A fleet of 100 electric Smart Fortwos is currently being tested in London. Those cars are not using Tesla batteries, reports The Los Angeles Times.

As a supplier to Daimler, Tesla will achieve volumes considerably higher than what it is used to. Tesla’s lone model, the Roadster, is an exclusive $109,000 sports car. So far, only 115 Roadsters have been sold, said Tesla, and it has orders for about 1,500 more. Tesla says the Smart contract will help the company revive its five-passenger electric sedan project, as well as plans for a more affordable car.

Until then, Tesla will rely on its roadster line, which begins sales in Europe this spring. A $129,000 Roadster Sport arrives on the market in June. The Sport will go from zero to 60 miles per hour in 3.7 seconds, 0.2 seconds faster than the standard model.