In an interview published on Monday, Daimler Chief Executive Dieter Zetsche told German business daily Handelsblatt its company has no plans to increase its 5 % stake in US electric carmaker Tesla Motors.
Mercedes-Benz seems satisfied with the arrangement it currently has with the rising Californian automaker, which has 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 unsustainable, as the news of a fire in a Model S triggered a 10% decrease in the share price in just a few short days.
It also seems safe to say Tesla’s stock performance will stay volatile as investors eagerly wait for the company’s third quarter earnings announcement on Nov 5 – with the company expected to say it had earnings of 11 cents per share, according to several analysts.
The American automaker is also now mulling a European expansion, and the focus of Musk’s strategy 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 a threat for the German premium automaker, but Tesla also plans a model expansion, with a vehicle coming in the lower price section of the market.