Daimler sells some stake in Tesla Motors to Aabar

Daimler AG sold part of its 10 percent stake in electric-car manufacturer Tesla Motors Inc. to Aabar Investments PJSC, bringing its largest shareholder into a venture to develop alternative powering systems.

Aabar, which will hold almost 4 percent of San Carlos, California-based Tesla, bought the stake under an agreement to increase cooperation with Daimler after the investment company acquired stock in the German carmaker in March, the companies said today in a joint statement. They didn't disclose a price.

The partnership with Daimler had as an objective "a desire to focus on the development of electric vehicles and projects aiming at the reduction of carbon dioxide emissions," Aabar Chairman Khadem Al Qubaisi said in the statement.

Daimler, the world's second-largest maker of luxury cars, bought just under 10 percent of Tesla for a "double-digit million-euro" sum in May. The Stuttgart-based manufacturer reiterated today that it plans to install Tesla's lithium-ion battery packs and charging equipment in 1,000 electric-powered versions of its Smart car.

Aabar, controlled by the emirate of Abu Dhabi, bought 9.1 percent of Daimler for 1.95 billion euros ($2.72 billion), acquiring 96.4 million new shares to overtake Kuwait as the carmaker's largest stockholder. Daimler said at the time that Aabar's purchase would allow the manufacturer to remain independent while building up resources for developing new fuel- efficient technology.

Daimler rose 1.47 euros, or 6 percent, of 25.70 euros in Frankfurt trading in the biggest jump since June 1. That pared the stock's decline this year to 3.8 percent, valuing the carmaker at 27.3 billion euros.