Toyota Sells Part of Tesla Stake After Daimler Exit
Toyota has sold part of its holding in Tesla, following Daimler’s full divestment, as cooperation between traditional manufacturers and the US electric car firm shifts focus.
Toyota has sold a portion of its stake in Tesla, the US electric car manufacturer, following Daimler’s decision to fully divest its own holding. The move, announced in October 2014, comes as both traditional carmakers reassess their financial and technical ties to Tesla, which has grown from a niche startup to a direct competitor in several segments.
Daimler’s full exit and Toyota’s partial sale
Daimler, the parent company of Mercedes-Benz, completed the sale of its entire 4% stake in Tesla for around $780 million. The German group said at the time that its technical partnership with Tesla would continue. Tesla supplied battery systems and electric motors for the Smart EV and the Mercedes-Benz B-Class Electric Drive, and Daimler said the divestment would not affect these projects.
Toyota, which invested $50 million in Tesla in 2010 ahead of the American company’s initial public offering, confirmed it had sold part of its holding but did not disclose the exact amount or timing. At the time of investment, Toyota’s stake was estimated at 2.5%, but subsequent capital raises by Tesla likely reduced this percentage. Toyota said it would continue to assess further cooperation with Tesla, particularly following the joint development of an electric RAV4 for the California market.
Changing relationships with Tesla
The reduction in shareholdings comes at a time when Tesla’s position in the industry has shifted. While both Daimler and Toyota initially invested to gain access to Tesla’s electric drivetrain technology, Tesla’s decision earlier in 2014 to make all its patents freely available to competitors has changed the nature of such partnerships. With proprietary technology now open, the strategic value of holding equity in Tesla has diminished for established manufacturers.
The competitive landscape is also evolving. Tesla’s ambitions in luxury and mass-market electric vehicles increasingly put it in direct competition with its former investors. Both Daimler and Toyota have their own electric and hybrid vehicle programmes and are developing new models for global markets. As rivals in the expanding EV sector, holding shares in Tesla has become less attractive.
Cooperation continues despite share sales
Despite the share sales, both Toyota and Daimler signalled that existing technical partnerships with Tesla would continue. For Toyota, the focus remains on assessing future cooperation, especially given the company’s broader strategy in hybrid and fuel cell vehicles. Daimler, meanwhile, continues to source electric powertrains from Tesla for certain models. The divestments reflect a shift from financial investment to a more transactional supplier relationship.
Tesla’s decision to open its patents and the exit of its early strategic investors mark a new phase in the company’s relationship with established manufacturers. As the electric vehicle market matures, traditional carmakers are choosing to compete with, rather than invest in, the Californian firm.
