Daimler takes 10% stake in electric car start-up

German luxury carmaker Daimler AG said it is taking a 10% stake in U.S. electric car start-up Tesla Motors Inc. Daimler’s acquisition is in line with its goal to expand its presence in the growing market for low- and no-emission vehicles. Neither company would disclose the exact value of the deal, though Tesla founder and Chief Executive Elon Musk said in an interview that it was “approximately in the middle between zero and US$100 million.” Daimler had already partnered with Tesla in January 2009 to develop battery packs and chargers for an electric version of its Smart mini-car. Musk said a second similar deal would likely be announced later this year. The head of Daimler’s research department, Thomas Weber, said the company was preparing for plans to increase corporate average fuel efficiency requirements in the United States. A surge of interest in cleaner, greener vehicles has sent orders for Tesla’s first offering, the Roadster sports car, soaring. Tesla plans to introduce its second model, an electric sedan known as the Model S, in 2011. As part of the deal with Daimler, Musk said Tesla will use Mercedes Benz components such as airbags, sensors and possibly some suspension components in the Model S. (May 20, 2009)