Daimler buys 10% stake in Tesla, offers parts and know-how
By Donald Melanson 
posted May 19th 2009 10:53PM
posted May 19th 2009 10:53PM
Daimler and Tesla have been working together in a limited capacity for some time now, but the two made their relationship official in a pretty big way earlier today, with Daimler announcing that it has bought a 10% stake in Tesla, and that it'll be lending a hand with both parts and engineering. Of course, as with most things Tesla, there's no firm price tag attached to the deal, although it's said to be in the "double digit millions." They're a bit more specific when it comes to the working relationship, however, which will apparently include Tesla "leveraging Daimler's engineering, production and supply chain expertise" in ways that'll "accelerate" bringing the Model S to production. Tesla will also reportedly work on battery pack integration and battery management systems for Daimler from here on out, and the two will continue to collaborate on Daimler's second-generation Smart ED electric vehicle that's slated to go into production later this year. Interestingly, as AutoBlog points out, the deal also gives Tesla access to the automotive lithium-ion cells being produced by Daimler subsidiary Li-Tec which, when we're talking about electric vehicles, is no small thing.
Just, finish the car. I don't care what it takes.
thats impossible of course if they are sharing "know - how" of how to run a business
Tesla just stomped their brand new pair of sneakers on a pile of hot steamy dog-sh!t. Daimler is gonna f*ck up Tesla just like they f*cked up Chrysler.
@hydeph you have no idea what you're talking about. chrysler was the worst thing that could happen to a prosperous firm like daimler. way behing in technology and designwise almost every car was crap!
Crap! I forgot to charge my car! again...
You can always charge it using your car's cigarette lighter.
Well, stop complaining and remember next time! lol
reminded me to charge my phone tonight, thanks
Uh, I can't make it in today, I forgot to plug my car in last night.
Maybe this will eventually make Tesla's cars more affordable for a wider range of consumers and improve the battery life and performance in the more affordable hybrid vehicles.
Or, it won't change their price, and the cars will now become unfathomably crappy.
Ryan took the words outta ma mouth.
Perhaps the Model S does have a chance at being real!
Neat.
No doubt the 10% stake in Tesla will be more profitable than their
venture with GM.
Big brand electric cars are a joke. Putting an electric motor into a
gasoline based chassis doesn't work. Chevy Volt, ford stuffing electric
motors into a focus, all crap. Tesla built a car around the electric
motor. The right way.
Chrysler not GM sorry. Not like it makes a difference, Big 3 are all the same.
Considering that Ford never took any bailout money, I feel it's a bit unfair to lump them with Chrysler and GM.
Yeah, that's fair, but they were close to failing because they were doing the same things as the other 2. Making ugly cars. Ford UK has some beautiful cars, its just a shame they wont make the same ones here. Id actually consider buying a Focus ST. Everyone I show the European versions of Ford cars to can't believe they actually are. Don't give me the whole bumper and crash regulations argument either, they are just a strict over there as they are here. It wouldn't compromise the aesthetics at all.
Yes, but they've pulled through.
Out of the big 3, a Ford is the only one I would even consider buying. In my opinion, their cars look nice, and I read something a little while back that their quality is near equal to that of Toyota and Honda. They've made the changes necessary to make it through this economy, without taking any government bailout money.
Plus, my 1994 Taurus SHO was pure awesomeness.
Head over to Autoblog and check out the 2010 Taurus!
Sex on wheels!
Seem to recall they wrote off Billions from their ill-fated merger...and in fact paid even more just to make the Chrysler go away. So even if it pans out to be zero, it will be more profitable. The tech transfer will be the big payoff, I believe.
Looking a lot better, nice. Go to Ford.co.uk and check out the focus, mondeo, Kuga, and focus cabriolet and tell me those designs wouldn't sell here though. They look amazing.
Pretty much EVERY European car looks better than the North American version. Have a look at the 6th Gen European Honda Civic (06-Present). How much sexier is that than the North American version of the same car?
That's really disappointing. Missing out on so many different good looking vehicles. Are they grabbing people that live under a rock and polling them on what they think looks good over here or what. I just don't get it.
This went totally off topic but good conversation anyway, haha.
LOL@"Putting an electric motor into a gasoline based chassis doesn't work"
Considering that the Tesla Roadster was built on the Lotus Elise chassis, a gasoline engine car. It is even assembled by Lotus, Tesla ships the body panels and drive train to england for assembly.
But yeah, they are losing money on a $109,000 car, I agree with you.
OK, there are exceptions then. But i still stick by that it generally doesn't work. The aerodynamics of MOST gasoline powered cars is such crap, that's why the drive distance on the "adapted" cars is such crap.
@This is stupid
Losing money? What do you think funds their 50k Model S Care. They had a great plan, sell the 109k model to rich bastards who wants a sport electric car then grab the money to produce the 50k Tesla Model S.
If this helps Tesla to produce my car faster I'm content, though this is a two edge sword *I'm staying positive though and hope this deal well skyrocket them, helping our failed auto industry.
this is a dangerous move for tesla. They are putting their main nest egg original technology into the deal and getting out mostly just logistical support. The thing that tesla has that no one else does is their battery pack. Diamler can suck them dry in a year or three and then walk off.
I wouldn't call it dangerous. I'd call it necessary. Yes, they are shopping the the thing they have that is most valuable (vehicle battery pack technology), but that's what you do, if you have to, to ensure survival. Tesla does nobody any good as a story about great idea that didn't quite make it. They need money to take the next step, and today they can't make cars fast enough, or at an adequate profit, to generate the cash they need. Without this, they might not have gotten orders for the S. Sure there are plenty of early adopters, but no so many who are willing to put down a big deposit that might disappear in chapter 11 proceedings.
how about a better photo for the post?
With any luck, DaimlerTesla may approach the great success of DaimlerChrysler.
Why has this company not received any bailout $$ to help further their technology, when loser companies like GM and Chrysler, with their loser products, have received tens of billions of dollars!?
Hmmmm could it be thousands of Union workers and their families, who vote overwhelmingly Democratic? Could it be the UAW, who channel tens of millions to the campaigns of Democrats? Could it? Could the coming newspaper bailouts, with US taxpayer monies, be payback for the slavish devotion of America's Pravda Press Corps? Could the stranglehold enjoyed by the perennially failing US public schools be related to the massive donations from the NEA and NFT? Could the Legal Tick Lawyers who drain the economic lifeblood, money, from the veins of the successful and industrious - could their coddling and favorable legislative treatment derive from the fact that they overwhelmingly contribute to the Democratic Party? LoL!
I genuinely hope you are either not from the USA, or if a US citizen, are under 12 years old. Your question made my day, thanks!
If General Motors goes out of business or is forced into liquidation, it will have economic shock-waves that make Lehman Brothers look minuscule by comparison.
Even though GM (and subsidiaries and suppliers and dealers and so on) will have to lay off a large number of employees to survive, that number is nowhere NEAR the amount of job losses that would happen if General Motors goes out of business.
Bill's comment becomes extremely entertaining if one imagines Stewie's voice (from Family Guy) uttering his words in a progressively higher pitch. Quite entertaining.
@Adrian
I concur; Shame I didn't put in a Cool Whip or Wil Wheaton; Wonder if they are Liberal Democrats...damn, forgot to mention Hollywood in my rant. Oh well.
Elections, basically.
Smart Erectile Dysfunction?
go on
So it appears Donald Trump is singing karaoke, while the gay couple at the next table wait their turn. The poor guy in the red tie is just plain bored and thinking "Why do you take me to these places? And the waitress hasn't even brought me my drink yet."
Daimler doesn't seem to be the most reliable partner: beside the Chrysler debacle, it's also worth mentioning that back in the nineties, they really screwed up with the Smart (aka Swatchmobile), designed by Swatch watchmaker, which was already supposed to be a hybrid back then and went very close to total failure..
The problem with this new electric cars will be how to fit American ego in so small car.
I thought the japs owned daimler nowadays?
W-P says:
"In March 2008 the Daimler brand was included in Ford's sale of Jaguar Land Rover to Tata Motors of India."
So its india-owned now eh, that explains how they can be buying stuff nowadays.
I'm excited for the model S. Can't wait til it comes out. I found a good site for online reviews and buyers guides. http://www.autotropolis.com/