May 19, 2009 (FinancialWire) — German carmaker Daimler AG (NYSE: DAI) has acquired an equity stake of nearly ten percent of California-based electric carmaker Tesla Motors Inc.

Tesla bills itself as the only production automaker selling a highway capable electric vehicle in North America and Europe. The electric cars available in these markets, called “neighborhood EVs” in North America, are limited to slower-speed travel on secondary roadways, according to industry sources.

The two companies have been working together to integrate Tesla’s lithium-ion battery packs and charging electronics into the first 1,000 units of Daimler’s electric Smart car, a micro-compact. A gasoline powered version of the Smart car entered the U.S. market in 2008.

According to Daimler, the investment enables the partners to collaborate more closely on the development of battery systems, electric drive systems and in individual vehicle projects. Daimler board member Thomas Weber said, “Our strategic partnership is an important step to accelerate the commercialization of electric drives globally.”

As part of the collaboration, Herbert Kohler, Daimler’s VP of E-drive and future mobility, will take a seat on Tesla’s board.

Daimler is also working toward the industrialization of lithium-ion battery technology. In March, the company founded the Deutsche Accumotive GmbH, a joint venture with Evonik Industries AG. As a result, Daimler is the first vehicle manufacturer that develops, produces and markets batteries for automotive applications.

Other carmakers that produce partial or fully battery-powered vehicles, including Toyota and General Motors, rely on third party suppliers for their battery packs.

Daimler said that 100 Smart electric cars have already been undergoing large-scale trials in London since 2007. The vehicles are being tested by fleet operators and private customers.

Later this year the Smart assembly plant in Hambach, France, is scheduled to start production of up to 1,000 units of Smart’s fortwo model with electric drive. This year Daimler is also starting small-series production of the Mercedes-Benz B-Class with a fuel cell drive system.

In 2010 the Stuttgart-based company will introduce its first battery-powered Mercedes-Benz. As of 2012, Daimler plans to equip all smart and Mercedes-Benz electric vehicles with company-produced lithium-ion batteries.

In 2004, San Carlos, California-based Tesla began development of its first electric vehicle, the Roadster. The pricey sports car, which accelerates from 0-to-60 mph in 3.9 seconds, has won acclaim from the automotive enthusiast press.

Tesla said that its Roadster is the first production battery electric vehicle to travel more than 200 miles per charge and the first US- and EU-certified lithium-ion battery electric vehicle. Tesla is working on a new sedan, called the Model S, which it plans to produce in California starting in late 2011.

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