Daimler sold its remaining 4% stake in Tesla for $780 million

Article by Christian A., on October 22, 2014

All of you folks know that Tesla is becoming more important and a rival for most of carmakers with its high-performance electric cars. Tesla is continuously increasing its value and now, Daimler’s 4 percent stake in the American company is valued at a whooping $780 million.

Daimler sold its stake in Tesla but the manufacturer said that their partnership with the company will not be affected. For those who don’t know, Tesla currently supplies battery technology to Mercedes-Benz electric cars.

The Mercedes-Benz B-Class Electric Drive uses technology from Tesla but still, the German vehicle offers a smaller range when compared with the well-know Model S, which is 265 miles or 426 km.

Earlier this month, Tesla introduced all-wheel drive versions of the Model S, which means that sales will cover more areas. The most powerful model is the 2015 Tesla Model S P85D, which arrives with 691 hp (221 hp front and 470 hp rear), enabling an acceleration from 0 to 60 mph (96 km/h) in 3.2 seconds and a top speed of 155 mph or 250 km/h.

The collaboration between German carmaker Daimler AG and American EV maker Tesla commenced as early as 2007. This collaboration centered on integrating Tesla’s lithium-ion battery packs as well as charging electronics into the first 1,000 units of Daimler’s electric smart car.

On May 19, 2009, Daimler purchased a stake of less than 10 percent in Tesla for a reported $50 million, as part of a strategic partnership between the two carmakers. This values Tesla at roughly more than $500 million at post-money valuation.

The strategic partnership allows Daimler and Tesla to collaborate further on the development of battery systems, electric drive systems as well as in individual vehicle projects. According to Daimler, the long-term partnership with Tesla complements its multi-facetted strategy to advance the electrification of the automobile. Daimler takes pride in being the first carmaker in the world that develops, produces and markets batteries for automotive applications through its Li-Tec joint venture.

In addition, the strategic partnership with Tesla also saw the appointment of Herbert Kohler, who serves as Vice President for E-Drive and Future Mobility at Daimler AG, as a member of Tesla’s board of directors.

On July 13, 2009, Daimler AG sold around a two-fifth of nearly 10-percent stake in Tesla to Aabar Investments PJSC, an Abu Dhabi government investment vehicle with focus in non-energy assets. Earlier in March, Aabar acquired a 9.1-percent stake in Daimler.

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Topics: daimler, tesla

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