The B-class collaboration between Tesla and Mercedes-Benz is not terribly surprising given that Mercedes-Benz parent company Daimler AG (Frankfurt: DAI) owns a 4.7 percent stake in the Palo Alto-based electric car company, according to Auto Blog.
Stuttgart's Daimler already offers a Tesla-powered electric car, the Smart ForTwo EV. The decision to offer the Tesla-powered, all-electric Mercedes-Benz B-class means that plans for a gasoline-electric, range extended electric vehicle (REEV) will be put on hold, according to Auto Week.
Tesla Motors Inc. (Nasdaq: TSLA) shares rose 1.53 percent to $31.13 Thursday morning. Daimler AG (Frankfurt: DAI) shares fell 1.39 percent to €36.50 ($45.34).
![Oklahoma Tornado 2013: Photos And Footage Of The Twister's Devastation [PICTURES, VIDEO]](http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_thumbnail/public/2013/05/20/oklahoma-tornado_1.png "Oklahoma Tornado 2013: Photos And Footage Of The Twister's Devastation [PICTURES, VIDEO]")
![Singapore Supervisor Slaps Intern To 'Nurture' Him In Viral Clip [VIDEO]](http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_thumbnail/public/2013/05/21/singapore-supervisor.png "Singapore Supervisor Slaps Intern To 'Nurture' Him In Viral Clip [VIDEO]")
![Fort Worth Texas Tornadoes Claim 6 Lives: Pictures And Videos During The Storm And Its Aftermath [PHOTOS/VIDEO]](http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_medium/public/2013/05/16/tornado.PNG "Fort Worth Texas Tornadoes Claim 6 Lives: Pictures And Videos During The Storm And Its Aftermath [PHOTOS/VIDEO]")
![Introducing Skywhale: Canberra, Australia’s Controversial $300K Centenary Balloon [PHOTOS]](http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_medium/public/2013/05/14/skywhale.jpeg "Introducing Skywhale: Canberra, Australia’s Controversial $300K Centenary Balloon [PHOTOS]")
![Meet Ahmed Angel: The Greatest Internet Superstar. Ever. [PHOTOS]](http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_medium/public/2013/05/14/ahmed-angel.jpg "Meet Ahmed Angel: The Greatest Internet Superstar. Ever. [PHOTOS]")
![Airbus Shows Off The First A350 XWB, The Boeing 787's Rival [PHOTOS]](http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_multimedia/public/2013/05/13/a350.jpg "Airbus Shows Off The First A350 XWB, The Boeing 787's Rival [PHOTOS]")
![Lisalla Montenegro: Meet Angels Pitcher C.J. Wilson’s New Supermodel Fiancé [PHOTOS]](http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_medium/public/2013/05/10/lisalla-montenegro_3.jpg "Lisalla Montenegro: Meet Angels Pitcher C.J. Wilson’s New Supermodel Fiancé [PHOTOS]")
![Surviving Sandy: The Rockaways Rise From The Ashes Six Months Later [PHOTOS]](http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_medium/public/2013/05/09/breezy-point_4.JPG "Surviving Sandy: The Rockaways Rise From The Ashes Six Months Later [PHOTOS]")
Like or Follow us for updates on the biggest stories!