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Tuesday, October 21, 2014

Daimler sees $780 million windfall from sale of Tesla stake, (NASDAQ: TSLA)

Daimler AG on Tuesday said it would book a $780 million windfall from selling its 4 percent stake in rival electric car maker Tesla Motors Inc . In a statement, Daimler Chief Financial Officer Bodo Uebber said, "We are extremely satisfied with the development of our investment in Tesla, but it is not necessary for our partnership and cooperation. For this reason, we have decided to divest of our shares."The sale of Daimler's stake in Tesla will result in a cash inflow of around $780 million, boosting earnings before interest an taxes by a similar amount for 2014. Proceeds from the stake sale will be used to strengthen Daimler's operational business, the Stuttgart-based automaker said.A cooperation agreement to supply Mercedes-Benz cars with Tesla battery technology remains is unaffected by the sale, Daimler Chief Executive Dieter Zetsche added."Our partnership with Tesla is very successful and will be continued", said Zetsche.

Tesla Motors, Inc. (Tesla) designs, develops, manufactures and sells electric vehicles and advanced electric vehicle powertrain components. Shares of TSLA traded higher by 2.11% or $4.87/share to $235.34. In the past year, the shares have traded as low as $116.10 and as high as $291.42. On average, 6016170 shares of TSLA exchange hands on a given day and today's volume is recorded at 4105521.