Daimler Sells Stake in Tesla
Courtesy of Tesla MotorsIn an announcement released after U.S. markets closed on Tuesday, Daimler AG, Germany-based maker of Mercedes-Benz and Daimler cars and trucks and smart cars, said it was “reorganizing its cooperation with Tesla Motors Inc.” (NASDAQ: TSLA). The…
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In an announcement released after U.S. markets closed on Tuesday, Daimler AG, Germany-based maker of Mercedes-Benz and Daimler cars and trucks and smart cars, said it was “reorganizing its cooperation with Tesla Motors Inc.” (NASDAQ: TSLA). The German company sold its 4.3% stake in Tesla less than a year after Daimler hedged its Tesla holdings for three years.
Because Daimler plans to continue its partnership with Tesla on automotive projects, the sales looks like a bit of profit taking. At today’s closing stock price Tesla’s market cap was $29.33 billion, making Daimler’s stake worth about $1.26 billion. Daimler said it expects a “cash inflow” of around $780 million from the stock sale.
Tesla will continue to supply electric drive units to Daimler for its Mercedes B-class models and the company,s smart for two electric drive mini-car. The chairman of Daimler’s board of management said, “Our partnership with Tesla is very successful and will be continued.”
Tesla shares have dropped about 1% in Tuesday’s after-hours session to $233.00 from a closing price of $235.34, up 2.11% on the day. The stock’s 52-week range is $116.10 to $291.42.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
