Daimler (ETR:DAI) Sells Its 4% Stocks invested in Tesla (NASDAQ:TSLA)
The renowned German automobile manufacturer Daimler AG (ETR:DAI) has decided to sell shares invested in the American motor company Tesla Motors (NASDAQ:TSLA). This break up could mean new partnerships for companies like BMW (ETR:BMW) with Tesla Motors. Daimler however wants to expand the terms of their partnership in the future.
Daimler (ETR:DAI) has sold its 4% shares invested in the American company and has pocketed the $780. Daimler’s CEO had already said that the pact made with Tesla (NASDAQ:TSLA) for supplying motors and battery items would not change. According to senior analyst Arndt Ellinghorsht the relations between the two companies will remain intact over a long period of time.
The company is supplying parts for the latest SmartForTwo electronic vehicle as well as the B-class car by Mercedes. The first lot of the SmartForTwo car had used batteries supplied by Tesla and in fact the SmartForTwo car has done tremendous business since its release and has been one the largest selling cars in Germany. Tesla would now be clearly tempted to make deals with companies like BMW.
Tesla (NASDAQ:TSLA) has been inviting different companies to share the patents in order to increase the market for electrical cars. The company invited BMW at the beginning of this year to cooperate with them on the idea of electric cars. The higher officials of these companies met for the discussion of a charging network for these new cars. This meeting involved investment opportunities and other discussions. In fact BMW has supported Tesla in European region for the idea of Tesla i3 electric car and the i8 plug-in-electric hybrid car.
According to Ellinghorsht relationship between the two companies has somewhat changed over the years; he thinks that from Tesla’s point of view working with BMW’s technology of carbon fibre may be more beneficial than working with Mercedes’ B-class. Quoted. Due to this weakening Tesla (NASDAQ:TSLA), at present seems more interested in BMW (ETR:BMW)’s idea of carbon fiber.
In fact Arndt says that Tesla is not much far from Mercedes and is catching up on in its biggest competitor really fast. The company’s S class models had to face a tough competition with Tesla during the last year. Dr. Thomas Webber of Daimler AG (ETR:DAI) says that they gave their full support to Tesla (NASDAQ:TSLA) for many years when it was a startup company; he also said that they learnt a lot from the automakers and Tesla has gained from their expertise in the automotive sector.
Daimler (ETR:DAI) said that Tesla had given great outputs on our investments but this is not something on which they can base their partnership. The company’s Chief Financial Officer expressed his satisfaction at their investment in Tesla (NASDAQ:TSLA) and its development; however he said that now the partnership has no benefits for his cooperation that is why they are parting ways.
However, BMW (ETR:BMW) is planning to stay with Tesla at this moment. Both these companies are on the verge of deciding their fate and if they plan to stick together, they might get some pretty large profits from their partnership.