Yesterday’s news that Daimler sold its 4 percent stake in Tesla weighed on the already beaten down stock of the electric carmaker. Daimler on the other hand is all smiles, having turned a $50 million initial investment into a cash flow of $780 million – not counting what it had received after selling a 40 percent chunk of its initial holdings to the Dubai government in 2009. Wall Street sources surmise that the sell was not a strategic decision, but the result of hedging. With the Tesla stock having retreated some 50 points from its September peak, options may have been exercised. According to a Daimler statement, the Stuttgart carmaker hasn’t simply cashed-in on its shares, but rather “has terminated the share-price hedge it initiated in 2013 and has sold its stake in Tesla of approximately 4%.”
Daimler isn’t the only high-profile investor that has lightened-up on TSLA stock.