Tesla has already collaborated with Toyota for an EV version of the Toyota RAV4 and now it’s being reported that the highly sought after car company is set to work with Mercedes-Benz on a new electric vehicle. Tesla and Mercedes-Benz already have a relationship for the electric Smart cars that use Tesla’s battery packs, but this next collaboration will be larger.

mercedes, evs, green transportation, green car, automotive, electric car, electric vehicle, elon musk, green car, Mercedes-Benz, Mercedes-Benz EV, Tesla, Tesla Electric vehicle, Tesla Model XThe Tesla Model X

In Tesla’s most recent shareholder’s letter, they revealed plans to work with Mercedes-Benz on a new electric model that will use a full Tesla powertrain, including the motor, transmission, inverter and software. Tesla did not release any other details about the new Mercedes model other than saying that revenue from the new collaboration will start coming in in the second quarter of this year.

Last week Tesla introduced its third model, the Model X crossover. The Model X is quickly becoming the best-selling Tesla model to date with over $40 million in reservations in less than a week.

+ GigaOm