Stuttgart, December 21, 2013
Daimler secures its partnership with Tesla
Daimler AG is securing its partnership with Tesla Motors, Inc. (“Tesla”). On December 20, 2013, Daimler concluded a three year equity collar transaction with respect to its holding of approximately 4% in Tesla after closing of the stock market in New York. In connection with this transaction, it is currently expected that Daimler will continue to own Tesla securities for at least three more years. The objective of the transaction concluded is to protect the value of Daimler’s shareholding in Tesla, whilst allowing Daimler to retain significant participation in any further appreciation of Tesla share price during the three year collar agreement.
Daimler expects to continue to work with Tesla on existing and new strategic projects in the years to come, and currently intends to continue to exercise its stockholder voting rights for the term of the collar. Daimler has cooperated successfully with Tesla for several years and currently intends to broaden and deepen its partnership in the coming years.
Tesla develops the complete drivetrain for the Mercedes-Benz B-Class Electric Drive, which will be launched in 2014. The batteries for the second-generation smart fortwo electric drive, the best-selling electric car in Germany, are also from Tesla.
“Tesla’s innovation, which is helping to drive the rising demand for electric vehicles, proves that we made the right decision by acquiring a stake in Tesla at an early stage, and that we are cooperating with the right partner,” said Bodo Uebber, Member of the Board of Management of Daimler AG for Finance and Controlling and the Daimler Financial Services division, as well as for Mergers and Acquisitions. “We are protecting our investment in Tesla against share price fluctuations”, explained Uebber. “In this way, we are also demonstrating the long-term nature of our partnership and our intention to continue and to broaden the partnership in the coming years.”