[7][8][9] Toyota worked together with Tesla Motors and Panasonic to develop the second generation RAV4 EV, and the electric SUV was released in the United States in September 2012.

Toyota then actually sold or leased 328 RAV4 EVs to the general public in 2003, at which time the program was terminated despite waiting lists of prospective customers.

[14] The RAV4 EV closely resembles the regular internal combustion engine (ICE) version - without a tailpipe - and has a governed top speed of 78 mph (126 km/h) with an EPA rated range of 95 mi (153 km).

Beyond the unusual power train (batteries, controller and motor), the remaining systems in the RAV4 EV are comparable to the gasoline-powered RAV4.

[12] Actual fuel economy and range depends on the same factors as a traditional gasoline-powered vehicle including rolling resistance and average speed (aerodynamic drag).

Some RAV4 EV prototypes were charged via a front fender mounted conductive charger coupling made by Yazaki Corporation.

In the use of charging the RAV4 EV, this equates to a cheaper cost-per-mile, roughly equivalent to a vehicle capable of 166.6 mpg‑US (1.412 L/100 km; 200.1 mpg‑imp), based on a price of US$3.00 per gallon.

The United States Environmental Protection Agency listed mileage ratings for the RAV4 EV in its yearly Fuel Economy Guide from 2000 through 2003.

[17] Toyota tested the RAV4 EV in Japan for 300,000 miles (480,000 km) over two years before introducing the vehicle in the United States.

Due to the impracticality of developing two battery types for a limited volume program, Toyota opted for the higher-performance, higher-cost NiMH RAV4 EV.

A number of electric vehicle advocates voiced disappointment that the choice was made to manufacture only the NiMH version.

No one knows for certain what prompted Toyota to change their position on the RAV4-EV, since they had long since fulfilled their obligations under the MOA with the California Air Resources Board's zero-emissions vehicle (ZEV) mandate via its fleet lease program.

The MSRP was US$42,000; but in California, ZIP-grant rebates of US$9,000, decreasing in 2003 to US$5,000, and a US$4,000 credit from the Internal Revenue Service brought the price down to a more palatable US$29,000 (US$33,000 for some 2003 deliveries), including the home charger.

[citation needed] In the eight years up to 2003, the RAV4 EV achieved a sales performance of approximately 1,900 units,[19] of which 1,484 were leased and/or sold in California.

Chevron had inherited control of the worldwide patent rights for the NiMH battery when it merged with Texaco, which had purchased them from General Motors.

This case was settled in the ICC International Court of Arbitration, and not publicized due to a gag order placed on Toyota.

[26] Due to the capacity of its battery pack the RAV4 EV qualified for the maximum US$7,500 federal tax credit and also was eligible for a US$2,500 rebate in California.

[37] The battery pack, electronics and powertrain components in the production version are similar to those in used in the Tesla Model S sedan launched in June 2012.

The second generation RAV4 EV combines an electric powertrain from Tesla and a battery produced by Panasonic in a chassis built by Toyota.

[10] While the quarter mile time is not officially rated from Toyota, the RAV4 EV (FWD) Facebook community has posted dragslip results of 15.71s at 85.5 mph (137.6 km/h).

[24] The battery pack is located below the floorpan, reducing the ground clearance as compared with the gasoline-powered version by a couple of inches, but the electric SUV's cargo space of 36.4 cubic feet (1.03 m3) is the same as its gasoline sibling.

The battery pack weighs 840 lb (380 kg) and because it is located in the lowest part of the vehicle, the lower center of gravity provides a better handling than the conventional Toyota RAV4.

Extended mode allows the battery to charge to its full usable capacity of 41.8 kWh, providing an expected EPA driving range of 113 mi (182 km) according to Toyota estimates.

However, due to EPA's procedures, Toyota expects the Monroney label to show the combined range of 103 mi (166 km).

Toyota had arranged with Leviton to offer a custom level 2 charging station priced at US$1,590 including basic installation.

The RAV4 EV began assembly in 2012 at Toyota Motor Manufacturing Canada in Woodstock, Ontario alongside the regular gasoline version.