Daimler Takes 10 Percent Stake in US Electric Car Maker Tesla

May 19, 2009

(ChattahBox) — German automotive giant Daimler has bought a nearly 10 per cent stake in Tesla, the Silicon Valley-based maker of electric-powered sports cars, the two companies said on Tuesday.

The deal provides Daimler, the maker of Mercedes-Benz luxury vehicles, with batteries and the know-how needed to bring an electric car to market while Tesla, a pioneer in electric cars raises funds they have struggled to get during the credit crunch.

This new investment expands on the deal made last year between the two companies, where Tesla would supply the lithium ion battery for the Electric Smart EV, a small city car. Telsa will will work on batteries, electric drive systems, for future Mercedes-Benz vehicles, and to further advance the Smart EV, which is still three years from mass production.

Neither company specified details of the deal other then Daimler officials saying, its investment is “a double-digit million sum for a nearly 10 percent stake in Tesla Motors.


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