A few weeks back I did some informed but utterly unconfirmed speculation about the nature of the deal that Tesla Motors had struck with Daimler. Of the two scenarios that I posited, the more likely was that Tesla would be supplying lithium ion battery packs to Daimler for use in the electric version of the Smart ForTwo. The German edition of the Financial Times today has a story on the expansion of Daimler's test fleet of battery powered Smarts from London into Berlin and other cities. In the story, it reveals that Tesla will be supplying batteries for the 150 cars that will be deployed in Berlin. Daimler is also teaming up with utility RWE to install 500 charging stations around the German capital. According to a Google translation of the story, the lithium-ion Smart will have a 90-mile range in urban driving. Daimler will eventually expand the test fleet to 1,000 cars. So far Tesla has not replied to a request for comment, but we'll provide an update as soon as we here something. Thanks to Wilhelm for the tip!

Update: Tesla's Darryl Siry declined to comment on the story at this time.

[Source: Financial Times Germany]