Mercedes-Benz parent Daimler sells Tesla stake

Germany's Daimler, parent of Mercedes-Benz, says it has sold its 4% stake in Tesla Motors but adds that work on electric-car projects will be unaffected.

Daimler had a 4% stake in Tesla, the upstart electric-car maker based in Palo Alto, Calif., that is shaking up the auto world.

Mercedes joined with Tesla to create the electric powertrain for its B-Class crossovers in the USA. Daimler says they will also be sold in Europe starting next month.

"In Tesla we do have a bold partner," says Dieter Zetsche, chairman of Daimler's board and head of Mercedes-Benz, in a statement. "Our partnership with Tesla is very successful and will be continued."

Daimler's board member for finance, Bodo Uebber, says that Daimler was "extremely satisfied" with its Tesla investment, but "it is not necessary for our partnership and cooperation. For this reason, we have decided to divest of our shares. This will also allow Tesla to broaden its investor base."