FRANKFURT Dec 21 Daimler AG, the
German maker of Mercedes-Benz cars, has hedged its holding in
Tesla Motors Inc against a decline in value over the
next three years, as it seeks to broaden its alliance with the
U.S. electric-car maker.
"The objective of the transaction concluded is to protect
the value of Daimler's shareholding in Tesla, whilst allowing
Daimler to retain significant participation in any further
appreciation of Tesla share price during the three year collar
agreement," Daimler said in a statement late on Friday.
Tesla is supplying electric motors and batteries to Daimler
for its Smart Fortwo electric vehicle (EV) and the new
Mercedes-Benz B-Class EV, which goes on sale next year.
Daimler, which holds a 4.3 percent stake in Tesla, said in
October it would like to expand its cooperation with the
"We are also demonstrating the long-term nature of our
partnership and our intention to continue and to broaden the
partnership in the coming years," Daimler's finance chief, Bodo
Uebber, said in the statement.
Tesla shares have more than quadrupled in value so far this
year, but they have lost 26 percent since their record high at
the end of September, following reports of its Model S sedan
catching fire in traffic accidents.
Tesla also provides EV components to Toyota Motor Corp