As the individual project done on the Tesla motors has provided me with sufficient background information on the firm, the news of Daimler selling it 4 percent stake in Tesla has intrigued me to further analyze the relationship between Tesla and its European predecessors.

Although the cooperation between the two corporations is said to still ensue after the termination of Daimler’s investment in Tesla motors, I think Daimler’s action represents the weakening of the relationship and does indicate the difference in the prospect of the two companies in the industry of electric vehicles.

I believe the initial partnership is established based on Daimler’s intention of using Tesla as a research department for advanced specialization in battery technology at the time when Tesla is still in its infancy. However, with Tesla’s remarkable success in the recent years and its intended expansion to a larger consumer market through the launch of a new affordable model –Tesla motors is now considered as a threat to its competitors (partners).

(Mercedes-Benz B-Class Electric Drive)

Furthermore, while Tesla concentrates on the development on all electric vehicles, the European automotive manufacturers’ focus on the plug-in hybrid electric vehicles proposes a completely different perspective in the future of emission-free cars. Therefore, the weakening of the ties between Daimler and Tesla is not an exogenous event but is rather a result from Tesla’s success as an individual automotive company.

Sources of Images (in order):

(http://www.arabamoto.com/var/albums/TESLA/tesla-logo.jpg)

(http://chargedevs.com/wp-content/uploads/2014/10/2014-B-Class-Electric-1.jpg)