Toyota Sells All Remaining Shares Of Tesla

6 months ago by Steven Loveday 21

Tesla Killer?

In January, April , and May of 2017, the Toyota Prius Prime has outsold the Tesla Model S and the Model X in the U.S. It sits close to total Model S sales for the year thus far, at over 8,000 sold.

Toyota sold all of its remaining Tesla shares due to a lack of new developments related to the two automakers’ early partnership.

Way back in July of 2010, Toyota made a smart move, following in the footsteps of Daimler the Japanese automaker purchased $50 million in Tesla stock. Daimler had done the same about a year prior. Toyota sold a large amount (but not all) of its shares in October of 2014 to net a whopping ~$700 million. Daimler picked up over $800 million selling its shares.

Though the two companies made a joint $1.5 billion via Tesla stock – which is more money than Tesla has made itself – the benefits of the early deals proved mutual. With the help of Tesla, Toyota was able to get its necessary compliance RAV4 to market quickly, and the Silicon Valley electric carmaker escaped from the likelihood of bankruptcy. Daimler utilized Tesla for its early Smart Fortwo ED units and Mercedes-Benz B-Class Electric Drive vehicles.

Following these partnerships, Daimler began dealing with all of its EVs in-house, and Toyota strayed to hydrogen fuel-cell vehicles for a few years. Fortunately, today Toyota is enjoying substantial success with its plug-in hybrid Prius Prime.

Though Toyota apparently sold off the rest of its Tesla stock back in 2016, the company just announced the facts publicly last week. As of March 2016 Toyota had around 2.3 million shares of Tesla (with ~$480 million at the time).

It is unclear what the final selling price was, but adding $500 million more to the almost $700 million (~$692 million) realized two years ago, and a Toyota is about $1.2 billion to the good on their $50 million dollar investment.  (Although Tesla is up some ~35% currently over 2016 highs, so they did leave some money on the table nonetheless)

Why did they hold onto the stock so long?  Perhaps there was a thought that something else would yet develop of the early partnership, or they just liked the trend of the stock. Toyota spokesman Ryo Sakai said:

“Our development partnership with Tesla ended a while ago, and since there has not been any new developments on that front, we decided it was time to sell the remaining stake.”

In November of 2016, Toyota moved forward with its electric car division, and made a commitment to lean more towards electric vehicles in the near future. However, the company hasn’t completely given up on hydrogen fuel cell technology. The newly formed division is still in the process of developing its future strategy.

Source: Reuters

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21 responses to "Toyota Sells All Remaining Shares Of Tesla"

  1. CLIVE says:

    Good. I am not a toyota fan other than the venture they have w BMW

  2. ffbj says:

    It seems a bit counter-productive though, as they use a portion of that money to continue to develop an inferior automotive solution with hydrogen technology.

  3. FISHEV says:

    Nice synergy. Toyota saves Tesla from bankruptcy early on and makes a $1B profit from the stock.

    Toyota hybrids are an excellent choice to lower one’s GHG emissions for the millions living in condos and apartments who can’t put in a 40A charger.

    1. CLIVE says:

      I have been charging on 110 for 4 1/2 years at my Condo I just asked for a spot next to a standard socket.

      100% Electric Baby ✅ Why not.

      1. Mister G says:

        Thank you!

      2. FISHEV says:

        Nice but one person out of 200 doesn’t work and 110/14amp doesn’t really work either except for short range EV on plug-in hybrids with small battery packs.

        A 200 car garage to provide a 40Amp EV charger requires 30,000A service and wiring, hugely expensive if even physically doable.

        1. Mikael says:

          You obviously don’t own an EV. For your daily driving and commuting low power charging is generally more than enough.

          And during longer trips fast charging will easily fill in the gaps. So actually the longer range EV the lesser need for high power charging at home.

          40 amps… *lol*…

          If you have such a 200 car garage you can also easily have a few faster chargers charging at higher rates at a higher cost available to all if someone would actually need it.

        2. MikeG says:

          Perhaps if you lurked more and posted less you would appear less ignorant about EVs than you do.

        3. Mark.ca says:

          Absolutely you don’t own an ev!
          My range is about 100m which is more than enough for work and fun. I bought a fast charger (at the time of the car purchase) which i plan to install in the future (now a year later) but not in that much of a hurry because I really don’t need it. It’s amazing how many believe this crap, it’s like suddenly everyone travels 100m+ per day just because they have an electric car.

          1. Martin T. says:

            You travel 0.1 of a Km daily?
            Why don’t you walk.
            or
            Did you mean 100Km.

            1. Tom says:

              This is Merica. We use miles. Get your crappy metric system out of here.

          2. mik W. says:

            looks like “m” is miles to me.

        4. Adam says:

          Hmmm, how about two. Almost six years now and my 2011 Leaf still takes all of my in town driving, charged at 12 amp 120V

          1. Dave K says:

            Absolutely, I installed a L2 charger when I bought my 2011 Leaf but I really almost never need it. I would say 120V charging is good enough for 40-50m/day. the exception is when you have an unexpected extra trip, but the new 200+m cars will make this less likely. I now have a Chademo DCQC at the Nissan dealer 4 miles away so if I need it I now have that option. 120V would really work for most people right now…

        5. Pushmi-Pullyu says:

          FISHEV said:

          “…provide a 40Amp EV charger…”

          Why would anyone think you need that many amps for an ordinary L2 charger? Are you confusing overnight, L1 or L2 charging with en-route DC fast charging? 16 amps for a L2 charger would be more than adequate, 24 amps would be superior. I don’t know if anyone would ever use 40 amps for L2 charging, but if they did, it certainly would be extraordinary.

          The need for power from an EV slow charger (L1 or L2) isn’t determined by the size of the EV’s battery pack, it’s determined by how far the car is driven on a typical day. If the car has a large battery pack, it doesn’t necessarily need to be completely charged in one night. EVs can drive on a partial charge just like gasmobiles can drive with a partially full tank of gas.

          1. Tom says:

            Agree with a small ‘yeah but’. A level 2 charger just isn’t that big of a deal. 40A on 240V is no different than a clothes dryer or oven connection. I would argue it comes in to be more necessary once electric companies start aggressively developing off peak rates/peak load controlled chargers in the same way they do electric heat or can shut off your water heater at peak demand time. In that environment both you and them would want your car to charge between midnight and 5 am. So it would be advantages to have a level 2 charger if the charging circuit were on a utility controlled load demand plan.

        6. mik W. says:

          Ha…. last I checked 200 units times 40 amps per unit is 8,000 amps.

    2. JustWilliamPDX says:

      I have been using 110 volt, level 1 charging for 30 months, from an outlet I installed myself. I have a Spark EV, not a plug in hybrid. So while your point that many drivers lack off-street parking is valid, the claim of a 240 volt/40 amp/level 2 charging requirement is a gross exaggeration to say the least.

  4. Nix says:

    July of 2010 TSLA shares were about $18/share. $50 million shares is roughly 2,800,000 shares.

    If they would have kept all their shares, they would have made approx $350,000,000 in the last 5 months since the beginning of 2017. They threw away $350 million in profits by selling too early.

    $350 Million dollars. USD.

    That doesn’t even count the profits they could have made lending out their shares to shorters.

    Ouch!

    1. Tom says:

      Bulls make money, Bears make money, Pigs get slaughtered.

  5. Pushmi-Pullyu says:

    “Why did they hold onto the stock so long?”

    Um, because the value kept going up? Kept going up, and generally staying up, much, much more than nearly all other stocks?

    Tesla stock price has recently been climbing to unprecedented heights. Selling the stock now will make Toyota quite a tidy amount of profit. Altho of course it’s possible the stock price will continue to climb, the safe bet would be to sell now, because it’s entirely possible the price will soon take a downward turn.

    Perhaps we don’t need to look elsewhere for a reason why Toyota is selling off its Tesla stock now.

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