Daimler AG, the German maker of Mercedes-Benz cars, has hedged its holding in Tesla Motors Inc against a decline in value over the next three years, as it seeks to broaden its alliance with the U.S. electric-car maker. "The objective of the transaction concluded is to protect the value of Daimler's shareholding in Tesla, whilst allowing Daimler to retain significant participation in any further appreciation of Tesla share price during the three year collar agreement," Daimler said in a statement late on Friday.Tesla is supplying electric motors and batteries to Daimler for its Smart Fortwo electric vehicle (EV) and the new Mercedes-Benz B-Class EV, which goes on sale next year.Daimler, which holds a 4.3 percent stake in Tesla, said in October it would like to expand its cooperation with the company."We are also demonstrating the long-term nature of our partnership and our intention to continue and to broaden the partnership in the coming years," Daimler's finance chief, Bodo Uebber, said in the statement.
Tesla Motors, Inc. (Tesla) designs, develops, manufactures and sells electric vehicles and advanced electric vehicle powertrain components. Shares of TSLA traded higher by 1.79% or $2.52/share to $143.24. In the past year, the shares have traded as low as $32.11 and as high as $194.50. On average, 12062600 shares of TSLA exchange hands on a given day and today's volume is recorded at 7422537.
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