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Tesla (NASDAQ:TSLA) becoming the world’s most valuable company is a tired line already. For some of the legacy carmakers that Tesla has passed on its way to the top, the most painful thing is not being outshone–it is missing out on the electric vehicle (EV) maker’s recent stock price rally.
In April 2010, the German luxury carmaker acquired a 9.1% stake in Tesla at $50 million. The EV maker went public two months later.
The Now-Sold Tesla Stake Is More Than Two-Thirds of Daimler’s Market Cap
It is essential to point out, though, that after Tesla went public, Daimler’s stake in the EV maker was watered down. Additionally, Daimler transferred a part of its stake to the investing arm of Abu Dhabi’s government before Tesla going public.
Still, Daimler booked a $780 million windfall after selling the stake in 2014, a gain of over 1,500%. Had Daimler held on, the paper gains would currently be in the region of tens of billions of dollars.
Not Just Daimler’s Pain
A decade ago, Toyota acquired a 3% stake in Tesla. Toyota completely divested from the company in 2017. The two carmakers ended their collaboration in making electric vehicles over culture clashes around the same time too.
The 20% Owner of Tesla
With the surge in Tesla’s stock price ahead of the split, as well as possible inclusion in the S&P 500 Index, Musk’s wealth has grown by triple digits. Year-to-date, his net worth has gone up by nearly 270%.
Musk is now the world’s fourth-richest person. At the beginning of the year, Musk was ranked no. 35. The Tesla CEO’s wealth gain year-to-date is the second-largest after Jeff Bezos.