Daimler crashes into Tesla Motors

Tesla’s dream of creating affordable, all-electric cars got a high-voltage jolt Tuesday when German auto giant Daimler bought a 10 percent stake in the San Carlos company. “We’re thrilled,” said Diarmuid O’Connell, Tesla’s vice president of business development. “Daimler invented the internal combustion engine. To partner with them is the greatest endorsement you can have in this business.” – from SFgate

But the real prize is Tesla’s advanced battery technology. Tesla’s lithium-ion batteries have the best combination of power, range and safety of any scalable model currently available. Mercedes has already tested them in a limited fleet of prototypes. Now it’s expecting to roll out its first battery-powered vehicle next year and will offer battery-powered versions of all its models by 2012. The timing for all this couldn’t be better. The White House just announced its new Corporate Average Fuel Economy standards, which aim to cut emissions by 40pc in 2016. A move towards a battery-powered fleet could help Daimler move to the front of the pack. That would make its investment in Tesla much more than just a shot at glamour. – from Telegraph

“Our strategic partnership is an important step towards accelerating the worldwide commercialisation of electric vehicles,” said Thomas Weber, a Daimler board member, in a statement. Daimler recently snapped up a stake in German group Li-tec to facilitate the manufacture of the lithium-ion batteries needed for electric cars. – from AFP