Due to generous subsidies from French President Nicolas Sakozy's administration, Daimler will produce the Smart ForTwo electric drive at its Hambach plant in the French region of Lorraine.

From the source: "The initial series production will begin now with 1,000 vehicles, the first of which will be delivered to customers by the end of this year. As of 2012, the smart fortwo electric drive will then be part of the regular product program of the smart brand."

There was no mention of Tesla Motors supplying the initial battery packs, nor who would continue to supply the battery packs past the initial build of 1,000.