Daimler sells its 4% stake in Tesla

German automaker Daimler on Tuesday said it would sell its 4 percent stake in Tesla, though it said the two companies would still cooperate on projects.

"We are extremely satisfied with the development of our investment in Tesla, but it is not necessary for our partnership and cooperation," Daimler CFO Bodo Uebber said in a statement.

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Tesla shares fell 1.2 percent in after-hours trading. Daimler said it expects the sale to generate around $780 million in cash.

At one point Daimler held just over 9 percent of Tesla, though that stake has diminished over the years.

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