• May 24th 2009 at 11:11AM
  • Add
Elon Musk and Dr. Thomas Weber with the Tesla Roadster and the smart ed

Not everyone think the big Daimler-Tesla deal announced last week is a win-win. In fact, Jay Yarow over at Business Insider is trying to figure our how either side benefits from Daimler's estimated $50+ million investment in Tesla. Yarow's basic argument is that Tesla didn't get enough to save itself and Daimler "picked up a company that has got one product with weak sales and is about to be saddled with enormous debt." Yarow also thinks that demand for Tesla's cars isn't exactly staggering, and it won't get better because there will be a lot more competition in the all-EV market, a market that Tesla currently dominates by default, in a few years.

Based on the excitement this deal generated, though, it's clear that Daimler got something for its money. Association with one of the leaders in the electric car field is an obvious plus, and there's got to be technology involved in the deal that Daimler wants. Yarow does admit that he's not seeing the whole picture, writing, "We must be missing something, though, because in this market, car companies don't let $50 million walk out the door for no good reason."

[Source: Business Insider]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • 2015 Toyota Highlander
    MSRP: $29,765 - $44,140
    2015 Honda Accord
    MSRP: $22,105 - $33,630
    2015 Toyota Corolla
    MSRP: $16,950 - $22,955
    2015 Mazda Mazda3
    MSRP: $16,945 - $25,545
    2015 Jeep Grand Cherokee
    MSRP: $29,995 - $64,895
    Share This Photo X