Report – Daimler won’t upgrade its Tesla shares image

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.