
Mercedes-Benz parent Daimler has acquired a 10% stake in California EV upstart Tesla Motors. The two companies have been working together to develop a battery pack for Daimler’s future electrified Smart car, as Tesla chair Elon Musk announced in Detroit earlier this year.
While Daimler is learning from Tesla’s lithium-ion know-how, including the development of battery packs and recharging systems, Tesla is taking advantage of the bigger, older company’s experience and supply chain to develop its own, supposedly less expensive Tesla Model S electric vehicle.
There are already 100 electric Smart cars testing in London. The results of this partnership with Tesla will produce 1,000 second-generation Smart EVs, which will be built at Smart HQ in France and used in pilot European programs.
And Mercedes fans, start saving up now. The company promises to introduce an electric M-B in 2010.
Image courtesy of Daimler AG.









