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Abu Dhabi Sells Off 7-Percent Tesla Stake, Makes $133 Million

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2012 Tesla Model S beta vehicle, Fremont, CA, October 2011

2012 Tesla Model S beta vehicle, Fremont, CA, October 2011

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Abu Dhabi, the capital city of the United Arab Emirates, might be working hard to ensure that the oil-producing nation becomes more environmentally friendly--but that hasn’t stopped its state-owned utility company from selling its 7 percent stake in Californian electric automaker Tesla Motors [NSDQ:TSLA]

Abu Dhabi National Energy Co. (TAQA), which is 75 percent owned by the Abu Dhabi government, said the sale earned it a profit of $113 million. 

Transferred to TAQA in December 2010, the 7.3 million shares were originally purchased from Tesla by the Abu Dhabi Water and Electricity Authority, a private joint stock company responsible for the sole purchase and wholesale of electricity and water in Abu Dhabi. 

According to Automotive News (subscription required), a spokesperson for TAQA said that it had “admiration for Tesla’s vision, technology and products,” but that the carmaker was a “non-core investment," despite the highly-anticipated launch of the 2012 Tesla Model S sedan later this year. 

While TAQA is no longer a direct investor in Tesla, however, Abu Dhabi’s sovereign wealth fund Aabar Investments is a top shareholder in Daimler and Toyota, which in turn own shares in Tesla. 

The impact of the sale of 7.3 million Tesla shares has yet to fully play out on the Nasdaq Market, which opens for the first time today since the Easter break. 

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Comments (2)
  1. The headline and text disagree on the size of the profits. A drop in Tesla stock means exactly nothing, nada, zilch at this point - they don't even need to tap the investment community to produce their first two profit making vehicles. Tesla stock, what with the immense drop due to the non-event of Rawlinson and another leaving the company, etc, has been all over the map over the past 8 months. Hasn't affected and won't affect the company in any way. Truly a non-event, just like Rawlinson's departure.
     
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    +1
    Bad stuff?

  2. This is a terrorist attack on my portfolio? I believe in TSLA and so I will not only hang on to it but will take the opportunity on pullback to purchase more.
     
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    Bad stuff?

 

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