Daimler Buys Stake in Electric Carmaker Tesla

Daimler paid $50 million for 10% share

Daimler said on May 19 it was buying a 10% stake in U.S. electric car manufacturer Tesla as it attempts to plug in to the market for electic cars.

Daimler paid "around $50 million" for its share in Tesla, the manufacturer of the "Model S" electric car, a much-anticipated vehicle with a range of 300 miles.

The two companies will collaborate on batteries and electric motors, a joint statement said. "Our strategic partnership is an important step towards accelerating the worldwide commericialization of electric vehicles," said Thomas Weber, a Daimler board member.

Daimler recently snapped up a stake in German group Li-tec to facilitate the manufacture of the lithium-ion batteries needed for electric cars. The company intends to roll out several models of electric car by the end of the year.

In September, Daimler said it was joining forces with RWE, one of the country's largest energy providers, to create a network of electric cars and charging stations in Berlin. The scheme will be the largest of its kind in the world and is set to start by 2010.

Copyright Agence France-Presse, 2009

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