Surprise as Mercedes sells off Tesla stake
Mercedes parent company Daimler has sold its stake in Tesla Motors for £485 million profit, surprising investors
Daimler-Benz announced today that it has sold off its four-percent stake in Tesla Motors, making a financial gain of $780 million (£485 million) in the process. But the company maintains that the development of a Mercedes electric car range will continue unaffected.
The German automaker claims it is trying to build its own battery making venture in its home country. Therefore holding shares in the California-based company is "not necessary for our partnership and cooperation", according to Daimler board member Bodo Uebber who spoke to the Wall Street Journal yesterday.
Daimler will continue to buy battery systems from Tesla for the forthcoming Mercedes B-Class electric car. But the company has not stated whether it will do the same for its recently unveiled C350 Plug-in hybrid compact executive model, as well as a flagship hybrid S-Class luxury saloon, which goes on sale next month.
When Daimler first acquired shares in 2009, Tesla was a decidedly fragile startup firm. Yet over the past five years it has rapidly expanded, becoming a credible rival for the Mercedes brand in some sectors, particularly with the Model S performance saloon.
But Mercedes' four-percent stake has been sold at a time when Tesla's shares appear to be on the downswing, possibly indicating that Daimler's sale was due to financial concern. The £485 million profit significantly boosts the German brand's 2014 financial position.
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