UPDATE 1-Daimler takes 10 pct stake in electric car startup

*Daimler taking 10 pct stake in electric car maker Tesla

*Tesla to use Mercedes-Benz components in electric sedan (Adds comments from Tesla CEO Elon Musk, background, LOS ANGELES dateline)

FRANKFURT/LOS ANGELES, May 19 (Reuters) - German luxury car maker Daimler (DAIGn.DE) on Tuesday said it is taking a 10 percent stake in U.S. electric car start-up Tesla Motors, expanding its presence in the growing market for low- and no-emissions vehicles.

Neither company would disclose the exact value of the deal, though Tesla founder and Chief Executive Elon Musk said in an interview that it was "approximately in the middle between zero and $100 million."

Daimler had already partnered with privately held Tesla in January to develop battery packs and chargers for an electric version of its Smart minicar, and Musk said a second such deal would likely be announced later this year.

The head of Daimler's research department, Thomas Weber, said the company was preparing for plans by President Barack Obama to increase auto fuel efficiency. [ID:nN18364500]

But the company's chairman, Dieter Zetsche, told reporters in Washington:

"This is a path we will pursue with or without legislation," saying affluent car buyers are willing to pay more for fuel efficiency.

A surge of interest in cleaner, greener vehicles has sent orders for Tesla's first offering, the Roadster sports car, soaring. After a series of costly production delays involving the Roadster, the company in February it expected to be profitable by mid 2009. [ID:nN11275693]

Tesla plans to introduce its second model, an electric sedan known as the Model S, in 2011. As part of the deal with Daimler, Musk said Tesla will use Mercedes Benz components such as airbags, sensors and possibly some suspension components in the Model S.

"Peripheral components can be a real pain in the neck if you don't have a good supplier," Musk said.

The Model S will not have a Mercedes chassis or powertrain, Musk said.

Daimler is set to start production of the second generation of the electric version Smart car by the end of this year, Weber said.

The first car of its main brand Mercedes Benz with an electric engine will be presented in 2010. (Reporting by Franz-Norbert Piontek, Nichola Groom and Diane Bartz; Writing by Arno Schuetze; Editing by Hans Peters and Steve Orlofsky)