Canadian Manufacturing

Daimler sells stake in Tesla to undisclosed buyer for US$780M

German parent company of Mercedes-Benz sold four per cent stake in California-based electric vehicle maker

October 22, 2014  by The Associated Press

PALO ALTO, Calif.—Daimler AG announced it has sold its four per cent stake in electric car maker Tesla Motors, Inc. for US$780 million.

The buyer was not disclosed.

The Germany-based parent of Mercedes-Benz says its partnership with Tesla is unaffected.

Tesla made the battery packs and chargers for the two-seat smart electric car and developed part of the electric drive system in Mercedes’ B-Class Electric Drive.

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Tesla shares fell US$2.64, or 1.1 per cent, to US$232.70 in after-hours trading Oct. 21.

They rose 2.1 per cent in the regular session.