FRANKFURT (Reuters) -- Daimler said it would book a $780 million windfall from selling its 4 percent stake in electric car maker Tesla Motors.
In a statement, Daimler Chief Financial Officer Bodo Uebber said, "We are extremely satisfied with the development of our investment in Tesla, but it is not necessary for our partnership and cooperation. For this reason, we have decided to divest of our shares."
The sale of Daimler's stake in Tesla will result in a cash inflow of around $780 million, boosting earnings before interest an taxes by a similar amount for 2014.
Proceeds from the stake sale will be used to strengthen Daimler's operational business, the automaker said on Tuesday.
A cooperation agreement to supply Mercedes-Benz cars with Tesla battery technology remains is unaffected by the sale, Daimler CEO Dieter Zetsche said in the statement. "Our partnership with Tesla is very successful and will be continued," Zetsche said.
Tesla is supplying electric motors and batteries to Daimler for its Smart ForTwo electric vehicle and the new Mercedes-Benz B-Class Electric Vehicle. The B-Class Electric Drive went on sale in the U.S. in the summer and will launch in Europe next month.