CNN Money. Tesla Motors will deliver two battery electric mules to Toyota Motor by the end of the month, combing Tesla’s electric drive system and battery packs and the bodies of Toyota vehicles.

“Toyota and Tesla engineering teams have made a lot of progress in a short amount of time and it is exciting to start seeing some initial results,” Tesla Chief Technology Officer JB Straubel said in a statement.

…Last year, Toyota revealed a concept version of a tiny electric “city car” with a 40 mile range. That car is under development, Toyota said at the time, and is intended primarily for short-term rental use within cities.

The Tesla project is separate from that one.

Toyota announced in May that it would invest $50 million in Tesla Motors following the electric car maker’s initial public offering. (Earlier post.)