Daimler buys 10 percent stake in Tesla
05-19-09 | 08:46 AM
#1
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Daimler buys 10 percent stake in Tesla
http://www.bizjournals.com/sanfranci...8/daily17.html
Tuesday, May 19, 2009, 6:27am PDT | Modified: Tuesday, May 19, 2009, 6:43am
Daimler buys 10 percent stake in Tesla
San Francisco Business Times - by Steven E.F. Brown
German carmaker Daimler AG bought a 10 percent stake in electric car business Tesla Motors Inc.
San Carlos-based Tesla had already been working with the Stuttgart giant to improve battery technology. Daimler, which used to own troubled U.S. car company Chrysler, is making electric versions of its popular two-person smart car.
Daimler, which puts out the Mercedes-Benz brand, put Herbert Kohler on Tesla’s board of directors.
Tesla, started by Elon Musk, has been looking for money. Last year it abandoned plans to build a new head office and factory in San Jose. It’s been waiting for some $350 million in loans from the U.S. government to pay for a new factory, probably in Southern California.
Low gas prices combined with a recession mean Tesla is having to work hard to promote its vehicles. So far, it only sells a $109,000 sportscar, which has been pooh-poohed by some critics as just a showy, expensive toy well out of reach of the average driver. As of mid-April, it had delivered 330 of the sportscars.
Last month Tesla said it had taken 711 reservations, at $5,000 each, for its four door sedan model, due out in late 2011, though Musk said this boost from Chrysler might speed that up. Although that adds up to some $3.5 million for the business, those $5,000 reservation fees are refundable.
By 2011, several competitors, including Nissan, Ford and Chevrolet, may have competing electric cars on the market.
Ford said May 6 it will spend $550 million to retool a factory in Michigan to start making electric versions of its Focus sedan in 2011, the same time Tesla’s new car hits the market.
Tesla’s sedans will cost about $57,500 each, although owners will be eligible for a $7,500 tax credit, cutting the cost to about $50,000.
Using a $4.25-per-gallon guess at future gas prices, Tesla’s math says the sedan “is equivalent to a gas guzzler with a sticker price of about $35,000.”
Daimler is testing 100 of its electric smart cars in London right now. Its factory in Hambach, France, will start making up to 1,000 of the electric smart cars later this year.
A battery-powered Mercedes is due out next year.
Daimler has a stake in Li-Tec, a German battery business, and it plans to make all its own vehicle batteries by 2012.
Tuesday, May 19, 2009, 6:27am PDT | Modified: Tuesday, May 19, 2009, 6:43am
Daimler buys 10 percent stake in Tesla
San Francisco Business Times - by Steven E.F. Brown
German carmaker Daimler AG bought a 10 percent stake in electric car business Tesla Motors Inc.
San Carlos-based Tesla had already been working with the Stuttgart giant to improve battery technology. Daimler, which used to own troubled U.S. car company Chrysler, is making electric versions of its popular two-person smart car.
Daimler, which puts out the Mercedes-Benz brand, put Herbert Kohler on Tesla’s board of directors.
Tesla, started by Elon Musk, has been looking for money. Last year it abandoned plans to build a new head office and factory in San Jose. It’s been waiting for some $350 million in loans from the U.S. government to pay for a new factory, probably in Southern California.
Low gas prices combined with a recession mean Tesla is having to work hard to promote its vehicles. So far, it only sells a $109,000 sportscar, which has been pooh-poohed by some critics as just a showy, expensive toy well out of reach of the average driver. As of mid-April, it had delivered 330 of the sportscars.
Last month Tesla said it had taken 711 reservations, at $5,000 each, for its four door sedan model, due out in late 2011, though Musk said this boost from Chrysler might speed that up. Although that adds up to some $3.5 million for the business, those $5,000 reservation fees are refundable.
By 2011, several competitors, including Nissan, Ford and Chevrolet, may have competing electric cars on the market.
Ford said May 6 it will spend $550 million to retool a factory in Michigan to start making electric versions of its Focus sedan in 2011, the same time Tesla’s new car hits the market.
Tesla’s sedans will cost about $57,500 each, although owners will be eligible for a $7,500 tax credit, cutting the cost to about $50,000.
Using a $4.25-per-gallon guess at future gas prices, Tesla’s math says the sedan “is equivalent to a gas guzzler with a sticker price of about $35,000.”
Daimler is testing 100 of its electric smart cars in London right now. Its factory in Hambach, France, will start making up to 1,000 of the electric smart cars later this year.
A battery-powered Mercedes is due out next year.
Daimler has a stake in Li-Tec, a German battery business, and it plans to make all its own vehicle batteries by 2012.
05-19-09 | 10:32 AM
#3
Lexus Fanatic
Joined: Nov 2008
Posts: 14,100
Likes: 1
From: tech capital
I saw the article early this morning on the Mercedes forum. Certainly positive news for both parties. Obviously there is still considerable risk but Mercedes can afford to take the risk and is willing. Since Tesla is a local company I've taken always been interested in their situation.
05-19-09 | 01:02 PM
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