Electric Connection: Tesla, Daimler

[Greyskye]

Source: BusinessWeek


Electric car startup Tesla Motors has a new partner: German giant Daimler (DAI). On May 19, at the fashionable Hay-Adams Hotel in Washington, Daimler announced it has taken a 10% stake, worth about $50 million, in the San Carlos (Calif.) auto pioneer.

The two companies had already been working together. Daimler was planning to build 1,000 all-electric versions of its small Smartcar using Tesla's battery technology. But Daimler wanted more than just a simple supplier-customer relationship, explains Dieter Zetsche, chairman of the board of management of Daimler and head of Mercedes-Benz Cars. "We are in a time of change," he says. "This industry is going through a kind of paradigm shift, and has to reinvent itself ultimately to be independent of petroleum and without CO2 emissions. We need fast technology change."

(...)

Tesla launched the Model S on Mar. 26. It claims to have more than 1,000 reservations for the all-electric sedan, which can carry seven people and travel 300 miles on a single charge. Tesla is asking for $5,000 deposits (or $40,000 for a special collectors' edition). The car won't be delivered until late 2011 at the earliest. "If they can get that thing on the road, they'll have a winner on their hands," says AutoPacific's Peterson. "The challenge will be to make an aluminum body at that price."

Read more: http://www.businessweek.com/bwdaily/dnflash/content/may2009/db20090519_566476.htm?chan=top+news_top+news+index+-+temp_top+story

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German company investing in an American start-up. Could be a very smart move on their part.

[and-justice-for-all]

1. Tesla's Model S is a HOT car...nt

[TheWraith]

4. True, but if I had the money I'd be tempted by the Fisker Karma.

True that it only goes 50 miles all electric, but it has on onboard generator which extends the range to 350 miles, and you can refill at any gas station.

[WestSeattle2]

6. That's my computer wallpaper....too frickin' cool. .n/t

[TheWraith]

7. And reputedly 100 miles to the gallon, to boot.

Series-hybrid is the way to go.

[WestSeattle2]

9. Amazing. Wonder why it took a non-car guy

to design something so cool? I mean really, compare a Tesla to an Insight or Prius. The "wow" factor buries anything "green" coming out of GM, Toyota, Honda, or Ford.

[Auggie]

2. Daimler is much better news than, say, Exxon

[blue_onyx]

5. A Daimler merger didn't go so well for Chrysler

Chrysler had one of the lowest cost structures in the auto industry when it merged with Daimler. It had some of the high costs when Daimler sold it. Tesla should be careful.

[fujiyama]

8. Agree completely

Tesla shouldn't allow Daimler to change their work culture either. Daimler imposed it on Chrysler and it never fit. Chrysler used to be the most profitable of the Big 3 and was very efficient as well.

Daimler is currently taking just a ten percent stake so it might more of an investment in Tesla's battery technology than anything else.

[madrchsod]

3. in 1908 an all electric car went from lincoln nebraska to times square

averaged 100 miles between recharges which was a problem due to the lack of places along the route to recharge the batteries. top speed 5-25mph.

101 years later......