Daimler Buys 10% Stake in Tesla Motors

In a press conference this morning, Daimler announced that it will be purchasing 10% of electric car maker Tesla Motors. As part of the deal, Tesla will provide battery packs to be used in electric Smart cars, according to Left Lane News. In turn, Daimler will agree to provide engineering support and possibly a platform for the upcoming Model S electric car.

Tesla has struggled to deliver cars on time and has been forced to increase the retail price of its Roadster. A partnership with Daimler, which owns Mercedes-Benz, could add some much needed stability and economy of scale to Tesla’s vehicles. The partnership could also lead to electric Benzes if the technology proves successful in the Smart and the Tesla Model S.

Tesla is planning to launch the Model S electric sedan in 2012 for the U.S. market. The Tesla Model S will sell for $49,000 and will have a 300 mile range. A quick charge for the Model S will take just 45 minutes.

tesla model s picture

Picture Via Tesla Motors