Tesla Gets Daimler As 10% Holder As Well As Partner (DAI)

Daimler AG (NYSE: DAI) has announced a partnership with the much-covered Tesla Motors Inc. for the electric car’s battery systems, electric drive systems, and vehicle projects.  As part of the agreement, Daimler is taking an equity stake of nearly 10% of Tesla Motors.  Tesla is the only automaker selling a highway capable electric vehicle in North America and Europe.  As part of the arrangement terms, Herbert Kohler, Vice President E-Drive and Future Mobility at Daimler AG, will take a seat on Tesla’s board of directors.

The two companies already have been working on an integration of Tesla’s lithium-ion battery packs and charging electronics into the first 1,000 units of Daimler’s electric smart car.  One hundred smart electric cars have already been undergoing large-scale trials in London since 2007. These electric vehicles are being tested in day-to-day assignments by fleet operators and private customers.  Daimle also is starting small-series production of the Mercedes-Benz B-Class with a fuel cell drive system. In 2010 the company will introduce its first battery-powered Mercedes-Benz.

The Tesla Roadster is the first production battery electric vehicle, which accelerates from 0 to 60 mph in 3.9 seconds and sees an equivalent of 256 miles per gallon.  It also sees an estimated 244 miles per charge with zero tailpipe emissions.  The Tesla Model S, the world’s first fully electric sedan, is planned for production in California starting in late 2011.

JON C. OGG
MAY 19, 2009