Toyota and Tesla are working on a prototype of an electric car; and Toyota is investigating Tesla's use of small, low-cost batteries, which differ from the Japanese auto maker's larger-scale batteries, Mr. Toyoda said.
"Collaboration with other partners is an important part of the future of Toyota," he said.
Toyota, which has had relatively few partnerships compared with other auto makers, purchased $50 million of Tesla stock last month at the initial public offering price and now has a roughly 3% ownership stake in the California-based electric car company.
Shinichi Sasaki, a Toyota executive vice president who was interviewed with Toyoda, said Tesla's use of small, laptop-style batteries wasn't considered an ideal solution for electric vehicles because the thousands of cells required to power a car means a higher chance of one cell failing. But if Tesla's system can be shown to work, he said it would be intriguing because of the simplicity of the batteries.
Mr. Toyoda said the company is taking an "omni" approach to alternative fuel, and that it will try to develop alternative fuel vehicles that cover all possible avenues, such as hydrogen fuel-cell vehicles as well as biodiesel or other biofuel-powered cars and trucks.
