A record-breaking sale by Tesla to Amazon is set to boost the electric mini carmaker’s market share and help the global carmaker achieve its goal of creating 100 million electric cars by 2021.
The $8.7 billion deal is expected to close this week, according to people familiar with the matter.
Tesla, based in Palo Alto, California, will get an exclusive U.S. delivery license from the nation’s largest auto carrier.
Tesla has said it wants to deliver a million electric vehicles by 2021, with a goal of making 100 million by 2021 as the electric vehicle market continues to expand.
The Tesla sale follows a record-setting sale by its battery maker to Nissan in December for $25 billion.
Tesla will pay $8,000 to every registered Tesla owner in the United States who purchases the Model S or X sedan.
The sale of a vehicle that has been largely overshadowed by Tesla’s success will help Tesla achieve its ambitious goal of building a mass-market electric car.
The Model 3 is expected in 2021, and it is also expected to be one of the most affordable electric vehicles in the market.
Tesla’s Model S and X are the best-selling cars in the world.
Tesla is also planning to introduce its next-generation, battery-powered Model X SUV in 2021.
The automaker is not yet certain when the Model 3 will be available, although the Model X and its $49,900 premium sedan are expected to come later this year.
Tesla CEO Elon Musk said last month that the company is planning to sell 2 million vehicles in 2020, an increase from the 5 million it plans to sell in 2019.
Tesla also plans to increase its stock price by more than 20 percent this year, which analysts have attributed to the sale of the Model 1, its biggest model to date.
Musk said the stock price will go up even further when the company introduces its Model X crossover, a crossover designed to offer more cargo space than the Model 2.
Tesla has struggled to keep up with demand for the Model 4, which was supposed to be introduced in late 2019.
Musk recently said the car was a “complete failure” that was delayed for “several years” after it was initially planned.
Tesla was not able to deliver on that commitment, and the company did not meet its goal for production of 500,000 Model 4 vehicles in 2021 and beyond.