Daimler Came to Tesla’s Rescue

In 2009, Tesla was facing serious financial difficulties, with just $9 million in cash at the end of the previous year. At a crucial moment, Daimler, the parent company of Mercedes-Benz, invested $50 million in the electric vehicle manufacturer in exchange for approximately 9% of its shares. The deal valued Tesla at around $550 million. Elon Musk later acknowledged that Daimler’s investment played a significant role in helping Tesla survive during its early years. In 2010, Tesla also gained access to a $465 million loan from the U.S. government to support its development and operations. The company repaid the loan in 2013, several years ahead of schedule.

Daimler eventually began reducing its stake in Tesla and sold its remaining shares in October 2014 for approximately $780 million. The investment generated a substantial profit compared with the original $50 million outlay. However, Daimler exited years before Tesla expanded into one of the world’s most valuable companies. By October 2026, Tesla’s market value had reached approximately $1.47 trillion, highlighting the extraordinary growth of the electric vehicle maker. While Daimler secured a significant return on its early investment, it missed out on the much larger gains that could have come from holding its shares for longer.