Daimler Reduces Stake in Tesla Motors by 40 Percent

By · July 12, 2012

Mercedes Tesla logos

Daimler reduced its investment in Tesla Motors by shifting 40 percent of its stake in the automaker over to a Middle East wealth fund.

Daimler's vehicle investment division,Blackstar InvestCo, has decided to reduce its ownership of Tesla Motors by shifting 40 percent of its stake in the automaker over to an Abu Dhabi wealth fund.

Blackstar InvestCo still remains Tesla's third largest shareholder, even after transferring 3.25 million Tesla shares to Abu Dhabi-based Aabar Investments PJSC. Tesla CEO Elon Musk is number one, followed by Jeff Evanson, Tesla's head of investor relations. "We expect that Daimler is going to retain sole ownership of Blackstar and not sell any of their shares," Evanson told Automotive News. "We expect the Daimler investment will remain at 4.7 percent."

As if in anticipation of possible suggestions that Daimler is jumping ship, Thomas Weber, Daimler's development chief, issues a statement: "Daimler's partnership with Tesla has developed very well and is long-term oriented. Both companies are leading players for electric mobility and continue to push ahead together in this field."

Tesla is expected to supply components for Mercedes-Benz' upcoming electric B-Class E-Cell, as well as other future Daimler vehicles. As Automotive News reports, Daimler spokesman, Florian Martens, confirmed the transferring of shares and stated that the Mercedes-Benz project with Tesla is linked to the B-Class.

In related news, Abu Dhabi Water & Electric, former holder of 7.3 million shares of Tesla Motors, recently sold off all of its Tesla holdings.

New to EVs? Start here

  1. Seven Things To Know About Buying a Plug-In Car
    A few simple tips before you visit the dealership.
  2. Incentives for Plug-in Hybrids and Electric Cars
    Take advantage of credits and rebates to reduce EV costs.
  3. Buying Your First Home EV Charger
    You'll want a home charger. Here's how to buy the right one.