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Carsales Staff31 Oct 2014
NEWS

Daimler, Toyota sell Tesla stocks

Leading car-makers cash in on Tesla stocks but maintain technical agreements

Within the space of a week, Mercedes-Benz parent company Daimler AG has sold its four per cent stake in Californian electric car company Tesla and Toyota has followed suit by offloading its 2.4 per cent holding.

Both Toyota and Daimler build cars that could be seen as rivals to Tesla's most popular vehicle, the Model S, such as hybrid versions of the Benz E-Class and Lexus GS.

Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, said that despite the divesting of its share in the company it would be business as usual in terms of the technical tie-ups, with Telsa currently supplying various battery solutions to the German company.

"Our partnership with Tesla is very successful and will be continued," proclaimed Dr Zetsche.

Toyota was less ebullient, releasing a statement saying it would "evaluate the feasibility of working together on future projects".

Tesla had supplied battery and drivetrain technology for use on the Toyota RAV4 EV since 2012, but Tesla confirmed that it will soon end its battery supply contracts with the Japanese car giant.

Toyota also has plans to focus on hydrogen fuel cell technology as opposed to electric vehicles or EVs, a technology stream that Tesla CEO Elon Musk has previously criticised.

Tesla's share price has dipped by almost 20 per cent since early September 2014, when the company that builds the Tesla Model S had shares valued at $286.04.

The company's shares closed at $238.10 at the time of writing, with the company's next new car, an SUV dubbed the Model X, being delayed. There have also been delays in the Australian rollout of the brand, with the company understood to be still looking for suitable service centres in Melbourne and Sydney, as early adopters who put down deposits on cars continue to wait.

There has been speculation that Toyota and Daimler are merely making savvy financial moves, with both companies' $50 million dollar investments in 2009 and 2010 respectively now worth considerably more.

Daimler says it will net $US780 million from the sale of its four per cent stake, and Toyota's 2.4 per cent should be worth roughly $US640 million.

Dr Thomas Weber, member of the Board of Management of Daimler AG for Group Research & Mercedes-Benz Cars Development, put a positive spin on the company's offloading of Tesla shares.

"We have supported Tesla as a start-up 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," he said.

Tesla's market value is pegged at just under $US30 billion at the time of writing.

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Written byCarsales Staff
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