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Daimler Sells 40% of Its Stake in Tesla Motors to Aabar Investments

Daimler AG has sold 40% of its equity interest in Tesla Motors to its new major shareholder Aabar Investments PJSC (Aabar), of Abu Dhabi, in their first joint strategic project. The investment allows Daimler and Aabar to leverage their shared interest in the development of low-CO2 drive systems, according to a statement issued by Daimler.

In May, Daimler AG acquired an equity interest of just under 10% in Tesla Motors Inc. for about $50 million (€36 million). (Earlier post.) Already at that time, Daimler and Aabar both wanted to invest jointly in Tesla. After the clarification of contractual details, they are now implementing that plan.

When we acquired our stake in Daimler in March we identified a number of potential areas for cooperation between our two businesses. One of these was a desire to focus on the development of electric vehicles and projects aiming at the reduction of CO2-emissions. Our joint involvement with Daimler in Tesla is completely in line with this strategy, and marks an important step in the continuing development of our partnership.

—His Excellency Khadem Al Qubaisi, Chairman of Aabar Investments PJSC

On March 22 of this year, Aabar acquired 9.1% of the share capital of Daimler AG with a total investment of €1.95 billion (US$2.72 billion). In connection with Aabar’s entry as a major Daimler shareholder, the two companies issued a letter of intent stating that in addition to the equity investment, other joint strategic projects would be initiated, including:

  • Electric vehicles with a particular focus on projects aiming at the reduction of CO2-emissions
  • Development and/or production of innovative compound materials to be used in automotive manufacturing
  • Social projects such as the establishment of a training centre in Abu Dhabi to educate young talent for positions in the automotive industry

Aabar is an investment company headquartered in Abu Dhabi and is listed on the Abu Dhabi Securities Exchange. It directly invests in various sectors including energy, infrastructure, real estate, automotive and financial services companies. Its largest stakeholder is the International Petroleum Investment Company (IPIC), which in turn is wholly owned by the Government of the Emirate of Abu Dhabi.


Henry Gibson

The Tesla has great electronics but it is the HUMMER of the electric car world. Newer versions need to be fitted with a fuel powered range extender immediatly for publicity purposes alone at least. The TZERO was one of the prototypes for the Tesla and it demonstrated the range extender very well, but much smaller versions could be used. Now that GE is going to build ZEBRA batteries they could also be used in versions of the Tesla. If you own a Tesla you can afford an electrical outlet to keep it plugged in. ..HG..


I don't think Tesla is the Hummer of electric cars. It actually has a better chance of being the BMW with its new sedan plans.

Elon Musk is on record saying hybrids are kind of dumb, because you pay cash, weight, and space for redundant motors, fuel, exhaust and such, but then your batteries don't work as well or last as long.

I do wonder, however, when Tesla adds a supercap as a buffer to lengthen the life of the battery pack. Maybe it doesn't make much difference with a large enough battery pack, but it just kind of seems like it should.


Ceramatec is introducing a sodium sulfur battery which operates at 200 degrees F. It should be cheaper than the Lithium ion types with higher energy and power density.


There are some big players throwing their chips on the table with this one. $50 million is pocket change to Daimler, but life's blood to Tesla.

It will be good to see how all of this turns out. The funding of new companies for future progress will depend on this kind of activity.


Okay look... This deal gives Aabar 4.0 percent of Tesla. Not enough to mean much for any party. What has happened here is Daimler accepted a €2B investment from Aabar who becomes a major shareholder. Daimler has given away a lot more than Tesla which is still back ordered for every product they introduce.

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