Tesla Motors Inc (NASDAQ:TSLA) To Faceoff With Mercedes-Benz In Electric SUV Market

Can Tesla Motors Inc (NASDAQ:TSLA) survive the onslaught? It has emerged that Mercedes-Benz is plotting to compete with Tesla’s Model X in the crossover market.

Mercedes-Benz is said to be keen to undercut Tesla Motors Inc (NASDAQ:TSLA) with a more affordable electric crossover that could start at $54,000. Tesla’s basic Model X SUV costs upward of $81,000.

With Mercedes-Benz preparing to enter the electric SUV market, Tesla is set to face fierce competition from a reputable brand. However, given the advances that Tesla has made in car design, battery technology and vehicle automation, Mercedes-Benz won’t have it easy competing against the company in the electric crossover market.

Electric Vehicle Architecture

Mercedes-Benz’s rumored electric SUV is said to be codenamed ELC and it is based on a new vehicle platform called Electric Vehicle Architecture (EVA). It is cited that Mercedes-Benz’s ELC will borrow some exterior parts of the gasoline-powered GLC. The parts expected to be copied from GLC include the windows and roof panel.

Auto show showoff

If all goes according to expectation, Mercedes-Benz could show off its ELC at a major auto show in 2018 possibly ship among the 2019 models.

Mercedes-Benz is said to be working to give its ELC a range of 250 miles on a single charge. The company is also reportedly developing cordless charging system for the electric crossover.

Affordable variant

To bolster its competitive edge against Tesla Motors Inc (NASDAQ:TSLA), Mercedes-Benz is said to be keen to produce more affordable versions of the ELC. Tesla also has the same strategy to reach more people with competitively priced Model X.

Competition can make Tesla better

Perhaps for drivers, increasing competitive pressure against Tesla Motors Inc (NASDAQ:TSLA) could unlock more benefits as the company works to outsmart the competition. Tesla is already trying to differentiate its electric vehicles with autonomous driving based on a system that gets vehicles to share new findings and earn from one another. As Apple and Mercedes-Benz plot to take on Tesla, they have many areas to catch up.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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