Skip to main content

Shareholders ask Mercedes why it hasn’t built a Tesla-rivaling model yet

mercedes benz electric sedan news performance specs concept iaa hard 7
Image used with permission by copyright holder
Daimler shareholders are worried about the immediate threat that startup companies like Tesla pose to established automakers as the startups continue to challenge the status quo.

Mercedes-Benz, Daimler’s most popular division, sells a handful of plug-in hybrid models, but its only fully battery-powered vehicle is the B-Class Electric Drive. The minivan-shaped EV hits 60 mph from a stop in 7.9 seconds in its fastest configuration, it offers just 87 miles of range, and it carries a base price of $41,450 before incentives are factored in. In comparison, the recently-introduced Tesla Model 3 sprints from zero to 60 mph in less than six seconds when properly configured, has a maximum range of 215 miles, and its pricing starts at $35,000.

Speaking during an annual shareholders’ meeting, investors demanded to know why it’s taken Mercedes so long to launch a Tesla-rivaling model.

“We don’t really have a product for this competition from Tesla. In the long term we have some great vehicles … but they are virtual at this point,” complained one of the shareholders. Another warned that the “fat years” for premium German car makers like Mercedes-Benz and rival BMW might soon be over.

Daimler boss Dieter Zetsche responded by pointing out that Mercedes remains “at the forefront of new technologies,” reports Financial Times. The executive re-affirmed his commitment to launch a long-range electric model before the turn of the decade, and to offer ten gas-electric plug-in Benzes by the end of next year.

Tentatively called ELC, Mercedes’ upcoming long-range EV will likely be a crossover that will fight in the same segment as Tesla’s Model X, but it won’t be ready until 2018 at the very earliest. As we previously reported, the ELC will be built on a new platform called Electric Vehicle Architecture (EVA) that will gradually underpin a full range of electric models.

Electricity will be provided by a large lithium-ion battery pack sandwiched under the passenger compartment. Made up of an electric motor mounted over each axle, the drivetrain will send up to 536 horsepower to all four wheels in its most powerful configuration. Mercedes-Benz promises the ELC — a name that might not be retained for production — will be capable of driving for up to 310 miles on a single charge.

Editors' Recommendations

Ronan Glon
Ronan Glon is an American automotive and tech journalist based in southern France. As a long-time contributor to Digital…
Tesla won’t close its stores after all, but its sales model remains digital
Tesla Model 3

Tesla has backpedaled on its plans to close a vast majority of its stores worldwide in order to save money, and to lower the price of its cars accordingly. The California-based automaker published a blog post to explain it will keep more stores open than it initially planned, and it will make most of its cars a little bit more expensive to offset the cost of running a dealer network.

"Over the past two weeks we have been closely evaluating every single Tesla retail location, and we have decided to keep significantly more stores open than previously announced," the company wrote on its official website. It will reopen some of the stores it closed in high-visibility locations, but they will be staffed with fewer employees. Ten percent of the stores it closed will remain that way; they were the locations that didn't perform well and would have closed even if Tesla didn't shift its sales model to online-only. Twenty percent of the stores that were set to close around the globe are under review, meaning the company will evaluate how well they do in the coming months before deciding whether to keep them open or shutter them.

Read more
Tesla Model S driver crashes and dies in fire, responders couldn’t open doors
tesla model s driver dies in fire door handles fail fatal crash and

After crossing three lanes of traffic at high speed, a 2016 Tesla Model S crashed into palm trees and burst into flame on Sunday, according to reports. The driver was pronounced dead at the scene in Davie, Florida.

According to Davie police spokesperson Vivian Gallinal, the driver appeared to overcorrect and lose control before entering the median and hitting the trees. Gallinal also said a police officer was unable to get the driver out after the officer failed to break the car's windows.

Read more
GTA isn’t fun in real life, so Mercedes-Benz wants to suggest safe parking spots
Mercedes-Benz GLE

Mercedes-Benz wants to reduce the likelihood of owners walking back to a broken window or, worse, an empty parking spot. It's developing an app-based in-car technology that suggests safe areas to park in by analyzing crime rate data. The function could become available in the United States in the not-too-distant future.

Markus Ehmann, a software developer for the brand, told Australian website Drive that the app consults open police records to analyze the number of crimes reported in a given area in the weeks before a motorist considers parking there. The list of crimes it's looking for includes violent offenses such as vandalism (e.g., a broken window or a stolen set of AMG alloy wheels), car theft, and assault.

Read more