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."


Latest News

Cracknell supports tax on sugary drinks in the UK
Patients less likely to die with more nurses, study
Gasoline Prices Drop Further in the Midwest and West due to Oversupply
Deutsche Bank Executives Face a Tough Turnaround Plan as Investors Lose Confiden
Viacom Misses Earnings Expectations for the Fifth Straight Quarter; CEO Takes a
Walt Disney Co. Reports Greater Than Expected First Fiscal Quarter Profits
Lara Casalotti finds stem cell donor
Sending mentally ill people long distances must stop, panel
Zenefits CEO Leaves Over Compliance Issues COO Takes Over
Apollo Education Group will be Acquired by a Group of Private Investors
BOJ’s Negative Interest Rate Expected to have Major Influence on Japan’s Banks
21st Century Fox Lowers Full Year Earnings Guidance