Arab Group That Invests Oil Money Buys 40 Percent of Daimler's Stake in Tesla

UPDATE: Adds remarks from Tesla .

Abu Dhabi-based Aabar Investments has purchased 40 percent of Daimler AG's stake in electric-car start-up Tesla Motors, with the aim of launching a joint venture, Aabar and Daimler said today.

In May, Daimler acquired an equity interest of just under 10 percent in Tesla, San Carlos, California, automaker of the all-electric Roadster, several of which are pictured here.

Tesla is one of the biggest players in the burgeoning electric-car sector, while Aabar is viewed as a spearhead investor for the emirate of Abu Dhabi in non-energy assets.

"This investment allows Daimler and Aabar to leverage their shared interest in the development of low-CO2 drive systems," the companies said in a statement.

In March, Aabar purchased a 9.1 percent stake in Daimler, saying then it would pursue joint strategic projects.

Tesla spokeswoman Rachel Konrad, reached late today as she arrived in New York for a store opening in Manhattan Tuesday, said, "Aabar is already a major investor in Daimler, so we welcome their investment in Tesla.

"This investment is consistent with the announcements made by Daimler and Aabar earlier on their intention to jointly work on strategic initiatives, including the development of electric vehicles."

In other words, Tesla's principals discussed Aabar before they finalized the Daimler deal, and today's development was not expected to change the strategic work that's being done now and planned for the future between Tesla and Daimler.

Aabar is an investment company controlled by the International Petroleum Investment Company, which is wholly owned by the Government of the Emirate of Abu Dhabi.

IPIC is one of the investment vehicles used by the Abu Dhabi government to invest oil income. Abu Dhabi pumps most of the oil produced by the United Arab Emirates, the world's third-largest oil exporter.

Posted by

Scott Doggett July 13, 2009, 4:17 PM

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