Four-percent share in Tesla looks to bring in $780 million for Daimler
Tesla Motors stock is floating fairly high these days. The company’s CEO, Elon Musk, has admitted the trading price is a bit high and it seems one of Tesla’s investment partners agrees.
The German manufacturer has held some four percent of overall Tesla shares until deciding this week to sell them off entirely.
Daimler, the parent company of Mercedes-Benz, has been a long-time investor of Tesla while also collaborating with the Silicon Valley EV manufacturer on electric propulsion technology.
“We have supported Tesla as a startup company for many years and have learned a lot from Tesla. At the same time, Tesla was able to profit from our automotive expertise. The cooperation with Tesla is one component of our activities in the field of electric mobility. It optimally complements our involvement in Deutsche ACCUmotive,” explained Prof. Dr. Thomas Weber, member of the Board of Management of Daimler AG for Group Research & Mercedes-Benz Cars Development.
The stock divestment will bring in $780 million for Daimler.
A statement from Daimler explains their investment in Tesla is no longer needed for their continued cooperation on propulsion systems.
Bodo Uebber, Member of the Board of Management of Daimler AG for Finance & Controlling and Financial Services stated, “We are extremely satisfied with the development of our investment in Tesla, but it is not necessary for our partnership and cooperation. For this reason, we have decided to divest of our shares. This will also allow Tesla to broaden its investor base.”
Tesla also buys components from Mercedes that are used in the Tesla Model S.
The Silicon Valley-based company has a current market capitalization of $29.33 billion US.