Tesla has reportedly signed a technology deal with Daimler according to latest comments from the electric car company’s Chairman Elon Musk. The new deal is in its early stages but according to the Tesla exec it could potentially grow into something major.

Elon Musk reportedly told Fox Business News that Tesla has a “small deal that could potentially lead to a very big deal.”

Some of the possibilities include a new parts or technology sharing deal, joint-development of future vehicles, or even shared production facilities. Lotus in the UK currently builds the chassis for the Tesla Roadster but annual output is limited to less than two thousand vehicles per year. Partnering with Daimler may allow Tesla to boost its volumes into the tens of thousands range.

Daimler may be able to benefit from licensing Tesla’s electric powertrain technology for its future all-electric vehicles.

Tesla Roadster