Latest in Car

Image credit:

Daimler sells its stake in Tesla as its EV partner grows up


Sponsored Links

They grow up so fast, don't they? It seems like just yesterday (well, 2009) that Daimler bought a stake in Tesla to give it a boost and secure a partner for electric car development, and the German automaker is now selling that stake a mere five years later. According to the company, an investment is simply "not necessary" any more -- Daimler can cooperate with Tesla on EVs without needing a say in its finances. The sale is theoretically a win for both companies. Daimler will pocket about $780 million, while Tesla can attract a wider range of investors.

The sell-off is partly a reflection of Tesla's health, since it's no longer a scrappy little startup that could easily run into trouble and jeopardize others' plans. However, it also lets Daimler reduce its involvement in a company which is quickly becoming a rival. The Model S is widely considered a threat to Daimler's higher-end Mercedes cars, and the competition is only going get fiercer with the Model S P85D, Model X and Model 3 likely to encroach on the brand's turf. While Daimler says that everything remains friendly, this move will let it quickly cut ties if things ever go sour.

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr