Tesla was recently unable to complete a $100-million round of venture funding and had turned to low-cost federal loans as an option for financing.
Teaming with Daimler will give Tesla access to the German company's "engineering production and supply chain expertise," Tesla Chief Executive Elon Musk said in a statement.
"This will accelerate bringing our Tesla Model S to production and ensure that it is a superlative vehicle on all levels."
The deal expands Daimler's access to Tesla lithium-ion battery technology. Under the agreement announced in January, Tesla agreed to provide 1,000 of the advanced batteries to Daimler this year and next.
As part of the deal, Herbert Kohler, Daimler's vice president of electric-drive systems, will become a member of Tesla's board of directors.