The investment is a vote of confidence for San Carlos, Calif.-based Tesla, which manufactures electric sports cars, and affirms the importance of developing non-fossil fuel powered vehicles.
Daimler is already working with Tesla on developing battery technology for an electric version of its Smart Fortwo, marketed by Mercedes-Benz in the United States.
“Our strategic partnership is an important step to accelerate the commercialization of electric drives globally,” said Thomas Weber, head of Mercedes-Benz research, in a company statement.
All Grown Up
So far, Tesla’s only production model is the Roadster, an electricity-powered sports car. The $109,000 car has been criticized by some to be more of a gimmick than a mass-production vehicle that could rescue U.S. drivers from the tight grip of oil.
But orders for the Roadster have soared despite numerous production delays last year. It is currently the only highway-capable, zero-emission vehicle sold in the United States.
The company has aggressively tried to become a major player should the market for electric vehicles take off. Tesla is planning its second model, a new sedan named Model S for 2012. The $50,000 car is marketed as a greener alternative to BMW’s 5 Series and the Mercedes Benz E-Class.
According to Tesla, the Model S will have a range of 160 miles and could accelerate from 0 to 60 mph in around 5.5 seconds.
“As a young and dynamic company, Tesla stands for visionary power and pioneering spirit. Together with Daimler’s 120 years of experience in the automotive sector this collaboration is a unique combination of two company’s strengths. This marks another important milestone in Daimler’s strategy for sustainable mobility,” said Weber.
Betting on High Gas
Daimler’s investment of $50 million is no small sum, and underscores the belief among industry experts that when $4.50 gas returns, consumers will be looking for viable—and affordable—alternatives to today’s gas guzzlers.
Tesla is also depending on certain U.S. Department of Energy programs to help fund green technology. Earlier this year, Tesla said that it needed almost $500 million in funding to bring the Model S into production.
“We are looking forward to a strategic cooperation in a number of areas including leveraging Daimler’s engineering, production and supply chain expertise,” Tesla Product Architect Elon Musk said in a statement. “This will accelerate bringing our Tesla Model S to production and ensure that it is a superlative vehicle on all levels.”
Financed by venture capital, Tesla was founded in 2003 by engineers Marc Tarpenning and Martin Eberhard.
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