Tesla (TSLA) on Watch as Daimler Conducts Annual Shareholders’ Meeting

Tesla Motors (Nasdaq: TSLA) is positive early following strong commentary from one of its technology partners.

Germany's Daimler AG touted achievements by the company in 2013, including record levels of unit sales, revenue, EBIT and net profit. The company said, Worldwide, Daimler sold nearly 2.4 million vehicles and achieved group revenue of €118 billion (2012: €114.3 billion). Group EBIT increased by 23% to €10.8 billion (2012: €8.8 billion); Group EBIT from the ongoing business amounted to €7.9 billion (2012: €8.2 billion). Net profit increased by 28% to €8.7 billion (2012: €6.8 billion); value added rose by 38% to €5.9 billion (2012: €4.3 billion).

One key growth area Daimler will focus on moving forward is technology. The company stated, Over the past five years, we have reduced both the fuel consumption and the emissions of our fleet in Europe by 25 percent – more than any other premium automaker,” stated chairman Dr. Dieter Zetsche as evidence of Daimler’s claim to be a pioneer with green technologies. The two-seater smart Electric Drive was the market leader in its segment in Germany in 2013. In 2014, the B-Class Electric Drive will be launched with a competitive range of operation.

The technology statement is important for Tesla as it moves to construct its giant Gigafactory battery plant. With Daimler, along with several other automotive giants, looking to expand its partnership with Tesla, good news will only bolster that relationship. One of the key points for other auto companies, as well as Tesla, to debut lower-cost, more-efficient vehicles is in battery technology. On Tuesday, GM (NYSE: GM) announced plans to sink $384 million to retool a Detoit-area plant and just $65 million to support development of its next-generation lithium-ion battery production and future battery systems. That compares with Tesla's ambitious multibillion facility bet on improving battery technology and production.

In any case, Tesla should be able to sustain investor interest from multiple income and sales fronts in the coming years (including additions to grid infrastructure and technology). Shares are indicated higher early Wednesday.

*** NOTE: More on the Daimler, Tesla partnership here.

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