Daimler Says Goodbye to Tesla
Buy low, sell high. That’s the old adage regarding how to make money on stocks. What isn’t widely known, however, is that individuals aren’t the only ones who subscribe to this way of thinking. Companies do it, too. Take, for instance, Daimler, the parent company of Mercedes-Benz. The corporation recently divested its stock holdings in Tesla.
In 2009 Daimler bought up 9 percent of the California electric car startup, most likely to help propel the company’s research into hybrid and electric drivetrains. It was a major boon for Tesla, and a small investment that will hopefully pay off for Daimler. Early on, though, Daimler sold off 40 percent of its holdings with Tesla.
After the startup went public, Daimler once again divested part of its holdings in Tesla. Now the automaker is set to completely divest from Tesla with the sale of the last bit of its shares. While this may appear an odd marketing strategy, Daimler is set to make around $780 million just from this last sell-off alone.
It seems Daimler is definitely getting the better part of the deal. While the company is selling off its shares with Tesla, the partnership that was solidified with the initial purchase will remain secure. The two firms will continue to operate as “technological partners.” This means Daimler will continue to reap the technological benefits that Tesla has to offer.
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