Germany's Daimler AG, the parent company of Mercedes-Benz and Smart, has purchased a nearly ten percent stake in California electric car start-up Tesla Motors. The automotive media is increasingly convinced the move is a prelude to buying all of Tesla, if Daimler likes what it finds once it gets a closer look at the company's operations, and its finances.

Wired notes, "Daimler's investment buys it a whole lot of battery know-how, something German automakers are short of. And a seat on the board gives Daimler gets a close look at Tesla's business plan and financials so it can decide if it wants a bigger piece of the action." Tesla, meanwhile, gets Daimler's expertise, and an infusion of cash, to help it build its highly-anticipated Model S sedan.

TechCrunch reports, "Daimler got that 10% stake in Tesla that was announced today for $50 million, says a source with knowledge of the deal. They've actually taken 9%." That puts the full value of Tesla at about $550 million...not too shabby for a company that was down to just $9 million in cash late last year."

But why would Daimler pay that much? The German giant could probably develop its own battery expertise for less. Autoblog Green speculates, "One possibility we can see is that Daimler wanted to lock up Tesla's battery know-how for itself to prevent competitors such as BMW from tapping into it...Another possibility is that Daimler is using the Tesla investment as a goodwill gesture. By keeping Tesla viable, Daimler could be seen by many EV fans as a savior of the electric car. For that kind of positive feeling, Daimler might consider $50 million a small price to pay."

The move could bear fruit for Daimler in a few years. Motor Trend reports, "Tesla will supply lithium-ion battery packs for electric smarts in a pilot program beginning by the end of 2009. Daimler intends to begin series production of a Tesla battery pack electric Smart by 2012."

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