Tesla Motors Inc (TSLA) and Daimler secure deal through three year equity collar
Tesla Motors Inc (NASDAQ:TSLA) and Daimler have secured their deal yesterday. Daimler concluded a three year equity collar with respect to their 4% holding in Tesla Motors Inc (NASDAQ:TSLA) after the closing of the stock market in New York. Daimler is expected to continue to own Tesla securities for at least three more years in connection with this transaction.
“Tesla’s innovation, which is helping to drive the rising demand for electric vehicles, proves that we made the right decision by acquiring a stake in Tesla at an early stage, and that we are cooperating with the right partner,” stated Bodo Uebber, member of the Board of Management of Daimler AG for Finance and Controlling and the Daimler Financial Services division.
Daimler will continue to work with Tesla on existing and new strategic projects for years to come. Daimler intends to continue to exercise their stockholder voting rights for the term of the collar. Daimler cooperated with Tesla for several years and will deepen their partnership in the coming years.
“We are protecting our investment in Tesla against share price fluctuations”, added Uebber. “In this way, we are also demonstrating the long-term nature of our partnership and our intention to continue and to broaden the partnership in the coming years.”
Tesla Motors Inc (NASDAQ:TSLA) has developed the complete drivetrain for the Mercedes-Benz B-Class Electric Drive, which is launching next year. Tesla also developed the batteries for the second-generation Smart Fortwo, which is the best selling electric car in GermanyThis article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry