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Daimler Cashes In Tesla Equity Stake For $780 Million, Praises 'Bold Partner'

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What deductions? The initial investment by Daimler was 50 million with 40% of that previously sold. Pretty hefty commission to result in your claimed 480 million deduction
Presumably Daimler also unwound its hedges at the same time, at a substantial loss. So the net proceeds of the total set of transactions was lower than the value of the equity alone.
 
Daimler, like most other businesses, performs best if they stick to their core business, that is where their skills are. Stock market speculation is not their core business. Their TSLA investment served its purpose and it is time to get out of market and back to making good cars.

Indeed, Daimler is not an investment company. It manufactures automobiles. It made its original investment in Tesla Motors to insure the success of its supplier of electric motors. It is now obvious that Tesla is around to stay and may become a dominant player in its industry. Since Tesla can now survive without financial support from Daimler, Daimler sold its hedged stake to free up the money for its own corporate purposes. Daimler made it clear that the sale should not be construed as a lack of confidence in Tesla Motors.
 
It looks like the Daimler fiasco ended up having no effect after the traders fully digested it. Like Curt said. the bots probably saw the words sell + 4% shares and acted. Human intervention will probably be needed this morning to keep the bots offline a bit.

That's what my 8 ball said, Otherwise it'd give me a negative number.

I do think we are in the run up to earnings phase. It usually start 3 weeks before the date, we are a bit late for this quarter.
"Daimler fiasco"? It's an investment decision and stock sale. Would not call it a fiasco
 
There are many that claim Daimler has insider knowledge and there selling is indicative the BEV market share will implode because FCV are now on the horizon or that Tesla is a Ponzi scheme and Daimler now knows the score. Therefore selling shares. The point I am making is they don't have some special insight into Tesla stock.

BTW Their core business is making 20th Century tech vehicles. That is what they are good at. Powertrains with 800-1200 moving parts.

I would be surprised if investors take FCV expectations seriously, I would not bet my money on FCV future. I am really surprised with Toyota strategic direction into FCV, they are too smart to be making such a mistake. There must be some missing piece of the puzzle that I am not seeing, that would explain such move.

Daimler management is highly likely to have more info than me regarding Tesla. I think they are just very happy with the business that they have now, future is for future people to take care of.
 
I would be surprised if investors take FCV expectations seriously, I would not bet my money on FCV future. I am really surprised with Toyota strategic direction into FCV, they are too smart to be making such a mistake. There must be some missing piece of the puzzle that I am not seeing, that would explain such move.
Identity thinking. Toyota (and most other carmakers) have a corporate culture where they think of themselves as building engines; a car without an engine just doesn't fit their identity. The same reason the oil companies won't switch away from oil -- because they're run by "oilmen".

It can require a lot of wisdom to break through that mental straitjacket.
 
What deductions? The initial investment by Daimler was 50 million with 40% of that previously sold. Pretty hefty commission to result in your claimed 480 million deduction

Not sure I should even bother to answer to a guy like you but will try.

It is not commissions. It is mostly taxes. Think Yahoo, Yahoo holds big enough shares of Alibaba and in JV with SoftBank that combined value of those holdings exceed market capitalisation of Yahoo itself. At first it looks like market assigns Yahoo negative valuation. But the truth is that if Yahoo sell their holdings and get the cash, it will had to pay taxes.

Is Yahoo's Business Worth Less Than Nothing? - Bloomberg View

Same true for Daimler. It is ridiculous to think that Daimler sold TSLA shares for $165 as you are claiming. They sold it for close to market price that was close to $240 at that time. 4.3% stake in Tesla for $1.26 billion. But then they reported net "cash inflow" - actual cash that Daimler got on it bank account.
 
Not sure I should even bother to answer to a guy like you but will try.

It is not commissions. It is mostly taxes. Think Yahoo, Yahoo holds big enough shares of Alibaba and in JV with SoftBank that combined value of those holdings exceed market capitalisation of Yahoo itself. At first it looks like market assigns Yahoo negative valuation. But the truth is that if Yahoo sell their holdings and get the cash, it will had to pay taxes.

Is Yahoo's Business Worth Less Than Nothing? - Bloomberg View

Same true for Daimler. It is ridiculous to think that Daimler sold TSLA shares for $165 as you are claiming. They sold it for close to market price that was close to $240 at that time. 4.3% stake in Tesla for $1.26 billion. But then they reported net "cash inflow" - actual cash that Daimler got on it bank account.
I believe that they cold have sold calls as one arm of collar and the stock was called away. Mperhaps you could elaborate on the guy like me comment. Insults shouldn't be so vague
 
Mperhaps you could elaborate on the guy like me comment. Insults shouldn't be so vague

I believe your QUOTE: "what are you smoking" toward me

1) imply drugs in English language
2) is a direct insult

So I have zero respect for you. Moreover, you asked me:
Are you looking for a lower entry point? Could you recommend one

I did answered your question in a good faith. Only to discover some shady conspiracy theory on your side toward me. Meh.
 
Gotta love Reuters' headline:
"Toyota sells some Tesla Motors shares"

I sold "some shares" once too. 300 shares... :)

And did they sell some or all? I'm confused.

Well, success of EVs make Toyota Prius look lame. So PR department of Toyota are very much interested in sending anti-EV messages. And here they could send this one on cheap - it guarantied to hit headlines, because of Tesla word... Just sell "some" shares, and inform few reporters.
 
There has been a Daimler rep on the Tesla Board of Directors since their investment. Since Daimler no longer has an investment in Tesla I wonder who will step in to take his place?

Daimler lost its seat on the Tesla Motors board of directors this past June. The number of directors was reduced from 7 to 6. That was to end the appearance of favoritism to Daimler over Panasonic and Toyota, which also owned shares but had no board seats. No longer being an insider made share ownership less valuable to Daimler, and may have been part of the reason for divesting its shares.
 
Now Toyota has sold some of their shares too.

I'm wondering if any of this had to do with Tesla allowing others to use their patents? Both Toyota and Daimler invested in Tesla to learn and cooperate on electric drivetrains. Once Tesla opened up their patents to everyone then that need became less important.

Just a thought. Certainly both companies are not in the business of buying and selling stocks. Getting a huge amount of money for their investment is a good enough reason to cash in.
 
Surprise surprise

Now Toyota has sold some of their shares too.

Just a thought. Certainly both companies are not in the business of buying and selling stocks. Getting a huge amount of money for their investment is a good enough reason to cash in.

Toyota needs every $$$ they can get to invest in hydrogen distribution network. :wink:

It is not surprising that these thinking heads that came up with FCV strategy as a preferred alternative are now selling out of TSLA.