Daimler has recently announced that it will be giving away the 4 percent stake, it has in Tesla Motors. The Mercedes-Benz company has sold it already, and as usual, the stock falls. This move came from the company as a result of the rivalry that has been on an ongoing concern between the two companies.
Daimler had invested in Tesla back in 2009 and quite recently it has invested in the Mercedes-Benz B-Class Electric Drive and electric powered smart cars. The share selling would not hamper the battery agreement at all. The analysts are of the view that Mercedes-Benz take Tesla as a rival in the market, especially that of the electric car market.
When Tesla entertained the initial investment by Daimler, the latter bought stakes accounting for 9.1 percent and costing about $50 million. This had been taken back to only 4 percent in a few years.
Tesla Motors announced its patents to the world in a hope that the other automakers would follow the trend and help in the development of electric vehicles. However, it went wrong for the company and Daimler thought of Tesla as a rival and as a result, sold off its shares.
Tesla is on the losing side here as its transparent opening about patents was misinterpreted by the other rivals.