Aabar Picks Up Share of Daimler Investment in Tesla

Daimler AG is unloading 40% of its equity stake in Tesla Motors Inc. to Aabar Investments PJSC, the Abu Dhabi-based investor that acquired a 9.1% in Daimler in March.

Daimler says the investment allows it and Aabar to “leverage their shared interest in the development of low carbon-dioxide drive systems.”

Daimler took a 10% stake in Tesla in May, promising to work together to bring electric versions of Daimler’s Smart car to market, as well as develop future cell and battery management systems and electric powertrains.

“When we acquired our stake in Daimler in March, we identified a number of potential areas for cooperation between our two businesses,” Aabar Chairman Khadem Al Qubaisi says in a statement. “One of these was a desire to focus on the development of electric vehicles and projects aiming at the reduction of CO2 emissions.”

Aabar invests in various sectors, including energy, infrastructure, real estate, automotive and financial services and is the largest stakeholder in International Petroleum Investment Co.

Daimler doesn’t reveal what Aabar is paying for its stake in Tesla.