Abu Dhabi National Energy Sells Stake in Tesla Motors
As its initial vehicle, the Roadster has been gradually rolled out into a growing number of international markets; investor confidence in Tesla Motors has steadily increased.
With deliveries of its second car, the Model S luxury sedan set to begin this summer and plans on the horizon for introducing further vehicles, such as the Model X people mover, revenues for the Silicon Valley company are expected to triple this year, with Tesla on target to make a profit in 2013.
Not surprisingly this has done wonders for Tesla stock, which has seen value jump from $17 to over $32 a share since the company first went public in 2010. Growing confidence in the electric vehicle market hasn’t hurt either.
For Abu Dhabi National Energy, one of the original shareholders in Tesla, this represents a good opportunity to sell its 7.3 million shares in the automaker.
Just how good? Try a total profit of $113 million. Some might find it odd that a largely state-owned oil exploration and energy company might want to buy shares in a maker of EVs in the first place, but the investment was actually a transfer from the Abu Dhabi Electric and Water Authority.
As a result, the Tesla stock purchase was never deemed a core asset by the Energy concern, so the sale doesn’t come as much of a surprise for many analysts. Now that it’s made a tidy little sum from the stock sale, Abu Dhabi National Energy plans to use the funds to pursue opportunities more in line with it’s core business; namely expansion in oil and gas operations in the Middle East and North Africa regions.
That said, despite the sale, the government of Abu Dhabi still retains a sizeable indirect interest in Tesla. German automaker Daimler AG maintains a stake in the EV company and according to Arab News, the emirate of Abu Dhabi is currently Daimler’s largest single shareholder.