One of the oldest automakers joined one of the newest today as Daimler took an equity stake of “nearly 10 percent” in Tesla Motors, a deal that will bear fruit later this year when the German company launches the electric Smart ForTwo.

San Carlos-based Tesla had already been working with the Stuttgart giant to improve battery technology.

The deal provides Daimler with batteries and the know-how needed to bring an electric car to market “at the highest possible speed,” company officials said. In exchange, Tesla gets a big pile of cash and, perhaps more importantly, the parts and engineering expertise it needs to build the Model S sedan.

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