The relationship between Toyota and Tesla dates back to 2010 and was originally proposed by Akio Toyoda, president and chief executive of the Japanese car giant.
Toyota and Tesla have collaborated on joint-development of the RAV4 electric SUV, which was only sold in selected urban areas in the United States.
Underpinned by a Tesla-designed battery and electric powertrain, the front-wheel-drive RAV4 EV developed from a pipe dream to a reality in just 22 months. The SUV was first revealed in 2012, and roughly 2600 examples have been produced over three years.
But that project is now winding down, and Toyota is putting more emphasis on fuel cell electric vehicles for the future.
No specifics of the sale have been released by Toyota, which is reported to have held a stake of about 2.4 per cent in Tesla. However, the Japanese company has left the door open for potential new technical collaborations in the future.