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

Californians Will Face Changes in Electricity Bill as PUC Gets Ready to Vote on
Increase in the Number of U.S. Oil Drilling Rigs Break the 29 Week Successive De
Though Employers Hire at Steady Rate Wages Remain Flat
Aetna Acquiring Medicare Insurer Humana for $37 Billion in Cash and Stock Combin
New Financial Worries Leave Greece Divided
Airlines Next on The Probe List of Justice Department’s Antitrust Division
Shutting Down the Wrong Engine Led to Crash of TransAsia Flight GE235 in Taiwan
Dominion’s Yorktown Oil Burning Unit to be Shut Down
Microsoft’s Monday Announcements; Agreement with AOL to Move Display Ads, Sells
Phil Knight, Nike’s Co-Founder will Leave the Chairman’s Post Next Year
In spite of Introducing Several Stimulus, China’s Economy Indicates Weakness
Puerto Rico’s Financial Problems Grow Further as Report Says It Can no Longer Me