Tesla was planning to renew its contract with Toyota for supplying batteries and motors for Toyota's RAV4 electric SUV, but reports suggest that Toyota has no current or pending collaboration with the US based car maker.
The supply contract is set to end this year and Tesla was planning to sign a new deal over the next two to three years.
Toyota is planning to focus on fuel cell technology instead of electric vehicles.
Toyota spokeswoman Julie Hamp was quoted by Wall Street Jounal as saying: "Our RAV4 EV project with Tesla, to supply 2,400 powertrains over approximately three years, has been mutually beneficial."
"We currently have no new, or pending projects under discussion."
As part of the previous collaboration between two companies Toyota bought $50m stock and sold its factory in Fremont, California to Tesla for $42m, according to the news agency
The RAV4 EV is one of the longest electric cars in the market which is primarily sold in California.
