Aabar Aabar buys 40 percent of Daimler’s interest in Tesla Motors

Daimler (DAI) has sold 40% of its stake in Tesla Motors Inc to Aabar investments, a group owned by the Abu Dhabi government.

Teaser photo: Tesla Model S

In May 2009, Daimler, the world’s second largest maker of luxury cars, acquired 10% of share in Tesla Motors.

Daimler has said that it never planned to keep its entire 10 per cent stake in Tesla for too long. The company said that Daimler and Aabar both wanted to invest jointly in Tesla right from the time the deal was announced.

Aabar will now own 4 per cent stake in Tesla.

Tesla Roadster photo

As per the deal, Daimler and Aabar would work together on battery systems and electric drive trains.

According to Daimler, Daimler and Aabar have agreed to work on the integration of Tesla’s lithium-ion battery packs and charging electronics into the first 1,000 units of Daimler’s electric smart car.

San Carlos-based Tesla Motors was recently granted a $465 million loan from the U.S. Department of Energy. As of now, Tesla Motors is the only carmaker which produces electric vehicles that can operate over long distances.The much-loved Tesla Roadster used lithium ion battery packs and can travel more than 200 miles on a charge. That makes it a legitimate highway vehicle, unlike most electric cars which are limited to a very short driving range over one charge. Tesla also plans to introduce an electric sedan, the Model S in 2011. After receiving the government funding, Tesla Motors said that it planned to produce 20,000 Model S sedans in 2011. While the Tesla Roadster is an exotic vehicle costing as much as a supercar, the Model S is expected to be much more affordable, even though the initial costs may be high.

The agreement between Aabar and Daimler that was announced in May 2009, will enable Aabar and Daimler to work closely on the development of battery systems, electric drive systems and individual vehicle projects.

“This investment allows Daimler and Aabar to leverage their shared interest in the development of low-CO2 drive systems,” the companies said in a statement.

Aabar, a group that is owned by emirates of Abu Dhabi, bought 9.1 stake in Daimler for 1.95 billion Euros earlier in 2009, overtaking Kuwait as Daimler’s largest stock holder.

“Aabar’s purchase would allow the manufacturer to remain independent while building up resources for developing new fuel- efficient technology,” Daimler said.

Abu Dhabi is increasingly using its oil wealth to position itself as a clean energy centre. There is a possibility now that the Model S and Tesla Roadster may make their way to Abu Dhabhi streets!