In an interview published on Monday, Daimler Chief Executive Dieter Zetsche told German business daily Handelsblatt its company has no plans to raise its 5 % stake it owns in electric car maker Tesla Motors.
Mercedes-Benz looks content with the arrangement it currently has with the rising Californian automaker, which involves the Americans providing the electric powertrain for the soon to be launched all electric B class model.
Meanwhile, an investment in Tesla stock right now could prove tricky, as the Tesla shares are up more than 380% so far this year. But the spectacular rise could also prove a volatile one, as the news of a fire in a Model S triggered a 10% drop in share price in just a few short days.
It also seems safe to say Tesla’s stock performance will remain volatile as investors wait for the company’s third quarter earnings report on Nov 5 – with the company expected to report earnings of 11 cents per share, according to several analysts.
The American automaker is also now targeting a European expansion, and the focus of Musk’s plan is on Germany, the home market of Mercedes Benz. So far, just selling the Model S with a price north of 70,000 euros is not too concerning for the German premium automaker, but Tesla also plans a model expansion, with a vehicle coming in the lower price section of the market.
) - Monday, October 28th, 2013 - filed under Industry
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