Daimler Buys 10% of Tesla
According to Forbes, German automaker Daimler has purchased a 10 percent stake in Silicon Valley’s EV sweetheart, Tesla Motors. “The two companies are already working together on using Tesla’s lithium-ion battery packs and charging electronics in Daimler’s electric version of its two-seat Smart car. The stake’s value was not disclosed, but [Daimler’s R&D meister Thomas] Weber said it was in the double-digit millions.” Don’t you just love it when German managers go all coy about their American acquisitions, like, say, when Daimler bought Chrysler? Of course, we mustn’t forget Musk. Announcing the news, Elon did what he does best: pile on the hype. “Tesla Chief Executive Elon Musk said in a statement that the partnership would help it bring the Tesla Model S car to production faster and ‘ensure that it is a superlative vehicle on all levels.'” Excuse me? Other than providing cash for battery packs for the Smart, where’s the bit about Mercedes helping Tesla develop the Model S? Oh maybe it’s something to do with this . . .
As part of the deal, Daimler vice president Herbert Kohler will take a seat on Tesla’s board of directors.
See? Now that’s funny. Can you imagine?
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So Elon chased everyone away from Tesla who knew anything about production engineering a car, and now Daimler-Benz is going to save his butt? I'd be very surprised if DB went into this deal without some substantial protections in the agreement and more control over the operation than a 10% stake would indicate.
Tesla is run like a silicon valley startup software company: Load of hype, funded by VC cash and customer deposits but very little in the way of product, a product maintenance plan or profit. Maybe the Daimler deal is a good (or desperate?) move as they certainly do need all the engineering expertise they can get. The Lotus engine swap took them years while Fisker and RUF seem to have done similar projects in months. But who knows, maybe Daimler is just wanted to get in on the hype?
Ok, I'm a major critic of Tesla and Elon, but this is huge. With the backing, ie. cash, of Mercedes and a platform and engineering help, I believe they could produce the Model S. I still doubt it will be profitable at the price point Elon claims or that it will live up to his performance targets, but this news has me at least believing it may exist.