Daimler acquires 10% stake in Tesla to further electric-car plans

Daimler acquires 10% stake in Tesla to further electric-car plans

With a view to further its electric car production plans, German automaker Daimler AG Tuesday announced its acquisition of a nearly 10 percent stake in California-based electric car maker Tesla Motors Inc. As an inclusive part of the stake deal, Herbert Kohler - Daimler's VP - will take a seat on Tesla's board of directors.

Though the financial aspects of the deal were not disclosed, Thomas Weber - the R&D head at Daimler's Mercedes-Benz Cars unit - has said that it was a "double-digit-million-dollar" transaction! Daimler intends using Tesla's battery lithium-ion packs in its two-seater Electric Smart EV scheduled for a `late this year' release - both Daimler and Tesla are already working in conjunction on Tesla's battery packs and charging electronics in the Daimler car.

In the opinion of Weber, Daimler's stake in Tesla will facilitate the working together of both companies, towards the common objective of developing superior battery and electric drive systems for consumer-market vehicles.

Commenting on the deal, Weber said at a press conference: "We are about to combine the best of the old and new school. We are both deeply convinced that electric powertrains will play a major role in sustainability mobility."

Tesla CEO Elon Musk opines that the affiliation would speed up the production of Tesla Model S car, and "ensure that it is a superlative vehicle on all levels."

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