Tesla founder and chairman Elon Musk announced at the Detroit Auto Show that Tesla will provide components for the Smart Electric, AutoWeek reports. He said that Daimler and Tesla have been working on the project in secret for the past 18 months.

Initially, Tesla will supply the charging systems and battery packs to build 1,000 Smart Electrics. "This will allow us to accelerate the advent of an affordable electric car," said Musk at the show, adding that the company is seeking to sign similar production agreements with other major automakers.

Tesla also took the opportunity at the show to showcase the Roadster Sport, a more powerful version of the Tesla Roadster that will cost $127,000, hit 0-60 in 3.7 seconds; it will be available in June.