The Mercedes Electric Drive is a new electric car developed by Mercedes-Benz and Tesla Motors.
The car, which is a version of Mercedes’ B-class hatchback, will be made available first in the United States in 2014. Tesla Motors will be manufacturing parts of the car’s electronic system. Tesla Motors produces its own electric car, the Tesla Model S sedan, as well as parts for the Toyota Rav4 EV, a battery-powered vehicle.
Mercedes’ new car will offer quick charging that will allow it to travel 60 miles after charging for two hours. A full charge would take 7 hours and will allow 115 miles of travel. The car will have the ability to increase speed from zero to 60 MPH in under 10 seconds.
The Electric Drive will be equipped with Mercedes luxury and safety features. Additional details are sketchy, so it is difficult to speculate on its success or earnings potential.
Mercedes’ parent company also produces the Smart Electric Drive. This two-seat car will go on sale in the United States in May. To date, no B-class hatchback has been made available in the United States. This new car will be available in some states, but will move to other markets. They own a 4.7-percent share of Tesla. Toyota, who uses Tesla to build electric RAV4 crossover, also owns part of the company.
Excitement about this new car venture, via a letter from the company, piqued interest in Tesla stock. Last week, it ended Thursday up 13% for the day. Stock value ended the week at $32.31, up 8.2% from last week. In addition, the company was showing a loss that was less than the expectation of 60 cents per share. The potential earnings announcement kept the company looking forward and not dwelling on the losses they had encountered.
In addition, there are rumors of another deal with Toyota – one that would bring the company more than $1 billion.
Expectations for the Tesla EV model car clearly exceed other models on the road. No pure EV car exists with the capability for the anticipated range. Deposits for 6,500 units have been secured and indicate the car will meet a need in the market. Considering its ties to both Mercedes and Toyota, Tesla is poised for further growth.