Daimler Takes Stake In Tesla
Daimler, the parent company of Mercedes-Benz, has taken a 10% stake in the electric vehicle start-up company Tesla Motors. The deal is a win-win not only for cunsumers, but also for both companies. Daimler will receive access to Tesla’s technical expertise in the design and production of electric vehicles. Tesla already has their Roadster electric vehicle on the streets and is working on the production of their Model S sedan. Tesla’s know-how will aid Daimler in bringing that company’s Smart EV to the market as soon as possible.
Tesla benefits hugely from the deal by gaining access to Daimler’s wide range of parts suppliers and traditional vehicle construction knowledge. Tesla has become an expert in the field of creating electric drivetrains and developing efficient battery packs, but the access to Daimler’s knowledge about tradtional components like steering and suspension systems will be invaluable in bringing the company’s forthcoming Model S to the market. Also, by leveraging Daimler’s influence with parts suppliers, Tesla will be able to cut production costs on their vehicles.
Another benefit for Tesla Motors is the infusion of cash into their operation. While the exact dollar amount is unknown, a Daimler representative said that it was a double-digit million sum, meaning between 10 and 99 million dollars, but closer to the lower end of that range, most likely. This money, combined with the possibility of a loan from the U.S. Department of Energy (which is likely to be decided within two months), will allow Tesla Motors to construct a factory for the production of the Model S.
