What the sold shares would be worth
The estimate tracks the nearly five million Tesla shares Daimler sold, adjusting for Tesla's 5-for-1 stock split in 2020 and 3-for-1 split in 2022. Those shares would now amount to approximately 75 million shares.
Using a Tesla share price of about $350, wallstreetONLINE values that holding at just over $26 billion, or around 23 billion euros, even after Thursday's sharp stock decline. By comparison, Mercedes-Benz has a market value of just under 40 billion euros at a share price of roughly 41 euros.
The calculation concerns only the stake Daimler still owned when it exited. WallstreetONLINE estimates that retaining its entire original holding of nearly 10% would have left Daimler with Tesla shares worth roughly 39 billion euros—about as much as Mercedes-Benz itself.
A $50 million investment in a struggling startup
Daimler acquired nearly 10% of Tesla for about $50 million in May 2009. Tesla was struggling with spiraling Roadster costs and needed roughly $400 million to put the Model S into series production.
Elon Musk said at the time that another investor would have paid more, but he placed greater value on Daimler's technical expertise. Dieter Zetsche described the industry's transition as a paradigm shift requiring rapid technological change.
Musk later credited the investment with turning Tesla's fortunes around. "We were saved by Daimler," he said, according to Green Car Reports. Tesla subsequently completed a successful initial public offering in June 2010.
Daimler soon transferred 40% of its Tesla holding to Abu Dhabi investor Aabar. Subsequent capital increases diluted Daimler's remaining stake to about 4%, which it sold in October 2014.
The exit and its financial impact
As part of the sale, Daimler ended a share-price hedge it had put in place in 2013, the company said in its announcement restructuring the Tesla relationship.
The transaction brought in approximately $780 million, which Daimler used to strengthen its operating business. The company said the sale also increased its 2014 earnings before interest and taxes by approximately the same amount.
The decision to sell the entire remaining holding contrasted with comments from Daimler CFO Bodo Uebber a year earlier. According to eMercedesBenz, he had said of Tesla shares that "we could use more."
Vehicle cooperation continued
Daimler said ending its equity investment did not affect its cooperation with Tesla. Work on developing the Mercedes-Benz B-Class Electric Drive was complete, and Daimler continued buying that model's powertrain from Tesla.
The B-Class was one of three Daimler vehicles for which Tesla supplied battery packs or complete electric powertrains, according to Green Car Reports. The others were the Europe-only Mercedes-Benz A-Class E-Cell and the second-generation electric Smart ForTwo.
At the time of the divestment, Daimler also said Mercedes-Benz Cars planned to introduce ten new plug-in hybrid models across all market segments by 2017.
