Shearman & Sterling represented Aabar Investments PJSC (Aabar) of Abu Dhabi in the first joint strategic project of Aabar and Daimler AG: the joint investment in Tesla Motors Inc., a California-based leading producer of electric vehicles.

On May 19, 2009, Daimler AG acquired an equity interest of just under 10% in Tesla Motors Inc. Afterwards, Daimler AG sold 40% of its investment to Aabar.

Tesla Motors Inc. is currently the only automobile producer marketing electric vehicles that are capable of operating over long distances in North America and Europe. Via this investment Aabar supports Daimler AG with the development of battery systems and electric power trains accelerating the worldwide commercialization of electric vehicles. The investment allows Aabar and Daimler AG to leverage their shared interest in the development of low-CO2 drive systems.

Shearman & Sterling previously advised Aabar in the acquisition of a 9.1% shareholding in Daimler AG. Aabar and Daimler AG had also agreed on a strategic cooperation in the framework of which they intend to pursue joint initiatives, such as in the area of electric vehicles.

Shearman & Sterling attorneys involved in the transaction include partners Georg F. Thoma (Dusseldorf-M&A), Marc O. Plepelits (Frankfurt-Capital Markets) and Johannes Frey (Munich-Tax), counsel Ansgar Simon (New York-International Tax) as well as associates Carlos Robles y Zepf, Rüdiger Schmidt-Bendun, Giuseppe Sferrazza (all Dusseldorf-M&A) and Annette Keller (Munich-Tax).