Daimler-owned Mercedes plans a massive electric-vehicle rollout in 2020 in a bid to take down Tesla. But the challenge won’t be easy.
Daimler unveiled that it plans to pour $11 billion in the electric-car technology in the next five years. This could turn the German automaker into Tesla’s greatest competitor to date.
However, stealing market share from Tesla won’t be easy. The American EV maker has a loyal base just like Apple. Plus, Tesla’s founder Elon Musk had his fans convinced that his firm is working towards a sustainable future, not just the profits.
On the other hand, Tesla has its weak spots like delayed production. The delays affected two of its flagship models – the Model C and Model S. In addition, the company rolled out just 260 units of its less pricey Model 3 in Q3 despite a promise of 1,500 units for the quarter. The delay was reportedly caused by “production bottlenecks”.
In September, Mercedes announced an $1 billion investment in an Alabama factory in an effort to launch a fully electrified SUV. The car is expected to hit the U.S. showrooms in 2020.
The Tesla-Daimler Feud
Many industry experts believe that Daimler’s endeavor was a slap in the face to Tesla, but Musk is confident the German automaker won’t take down his company that easily:
That’s not a lot of money for a giant like Daimler/Mercedes. Wish they’d do more. Off by a zero.
— Elon Musk (@elonmusk) September 24, 2017
Daimler’s response to Musk’s tweet was that the company had already invested $10 billion in the technology.
— Daimler AG (@Daimler) September 25, 2017
However, that investment was not prompted by the U.S. entrepreneur’s online claims. The electric car funding goes back to 2016.
What’s more, Daimler’s increased interest in the electric-car technology is not spurred by Tesla alone. The Chinese government recently announced that it plans to phase out petrol and diesel cars, but it didn’t provide a timeline, citing ongoing “relevant research”. It is worth noting that China is the largest market for EVs in the world.
Image Source: Pixnio
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