Earlier today, Tesla stock was given a Sell rating by Goldman Sachs, citing the arrival of competitors from established automakers. Some of these competitors are dubbed as “Tesla Killers,” such as the Jaguar I-PACE and the Mercedes-Benz EQC. The financial firm’s renewed Sell rating on Tesla appears to have affected the sentiment of some investors, resulting in TSLA stock ending the day down 4.21% at $288.95 per share.
Earlier today, the electric car industry also welcomed its latest vehicle from legacy automaker Mercedes-Benz. At an event in Stockholm, Sweden, Daimler AG Chief Executive Officer Dieter Zetsche unveiled the Mercedes-Benz EQC, an all-electric crossover SUV that symbolizes the company’s commitment to the upcoming electrification of the transport industry.
“There is no alternative to betting on electric cars, and we’re going all in. It is starting right now,” Zetsche said.
Mercedes-Benz tried hard with the EQC, with Zetsche stating that the vehicle will be profitable, and that it would “offer the best package” compared to rivals. The EQC also looks very much like a conventional Merc SUV, with its almost understated lines, its high ground clearance, and its tough stance. The EQC’s basic specs are quite decent, with two electric motors that produce 402 hp and 564 lb-ft of torque. The SUV can accelerate from 0-60 mph in 4.9 seconds and hit a top speed of around 112 mph. That being said, the Mercedes-Benz EQC’s range and production date ultimately prove that it won’t be so easy for legacy automakers to gain EV expertise that is comparable to Tesla’s.
The Mercedes-Benz EQC is equipped with an 80 kWh battery pack, which puts its size between the base Model X’s 75 kWh battery pack and the Jaguar I-PACE’s 90 kWh battery. Despite its generous battery size, the EQC’s estimated range is very conservative at around 200 miles per charge. Charging the vehicle from 10% to 80% is also estimated to take around 40 minutes. The EQC’s apparent lack of range has not gone unnoticed. Alex Roy, a veteran of the auto industry, for one, noted that the EQC’s range was a big “miss” for the established German automaker.
In a way, this could be attributed to Mercedes-Benz’s lack of experience in designing and building all-electric cars. And it’s not just Mercedes-Benz, either. Jaguar’s I-PACE is listed with a 240-mile range, but informal, real-world tests online have noted that the vehicle’s battery consumption is quite high. The same could be true for the EQC. It might have a big enough battery, but it could prove to be the electric equivalent of a gas guzzler.
This is something that Tesla has refined over the years. Elon Musk has opted to develop Tesla’s battery packs and even its software in-house, allowing the company to create vehicles that just work. In terms of range, Tesla’s cars usually come very close to their rated range, in some instances even exceeding it. Even the Model X 75D — one of Tesla’s largest, heaviest offerings — could go as far as 237 miles with a 75 kWh battery. Tesla’s progress in developing and building electric cars ultimately cannot be discounted, as Volkswagen AG, a prominent German automaker, was one of the investors willing to help fund Tesla’s attempted privatization.
Another notable detail from the Mercedes-Benz EQC’s unveiling that validated Tesla’s experience in building electric cars is the German-made SUV’s production timeline. Mercedes expects to start manufacturing the EQC sometime next year, with deliveries beginning in 2020. Compared to Tesla’s hyper-aggressive timetables, Mercedes-Benz’s timeline is very conservative, especially considering that the automaker is looking to build the EQC in some of its existing facilities.
A Tesla Model 3 being assembled.
There is very little doubt that Tesla is the company that ultimately made electric cars desirable, proving to consumers that battery-powered vehicles are actually realistic alternatives to fossil fuel-powered cars. Since starting the production of the Tesla Roadster, the company has gained a lot of experience, a lot of it coming from trial and error. Over the years, Tesla has refined its battery technology, to the point where the company is now attempting to hit a battery pack cost of $100 per kWh. Its 2170 cells that power the Model 3 are also proving to be impressive, with Detroit veteran Sandy Munro praising it as some of the finest batteries he has ever analyzed.
A central part of the Tesla Killer thesis is that competitors from established automakers can easily catch up and overtake the California-based company with vehicles that are far superior in quality and performance. If the range and estimated delivery date of the Mercedes-Benz EQC are any indication, it appears that the arrival of these competitors might be just a little bit too late. After all, by 2020, Tesla is planning to start the production of the next-generation Tesla Roadster, a supercar to end all supercars. The Tesla Model Y, a CUV expected to be even more popular than the Model 3, would likely be in production by then as well.
Watch the Mercedes-Benz EQC’s unveiling in the video below.
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Infrastructure = limited
I'm not seeing this one "kill" anything, but it is a nice entry into the electric car market as another 'traditional' automaker begins to see that electricity is the future of transportation.
To begin with, I would like all vehicles to be electric. But, I notice that Mercedes, BMW, Jaguar are all coming out with an SUV type vehicle as their entry into the category.
The reason for the SUV designs is simply a function of market demand. For instance in the upscale vehicle markets like Switzerland, almost 50% of sales are made up of vehicles like compact SUVs and larger (https://www.swissinfo.ch/ger/wirtschaft/schweizer-automobilmarkt_autos-werden-immer-groesser-und-leistungsstaerker/43964256?utm_campaign=swi-nl&utm_medium=email&utm_source=newsletter&utm_content=o). As people are willing to spend more for these 'premium' large cars, auto makers have been racing to introduce more SUV-like options. It is only natural that they start out with this category where they can make a large margin. You are right in being disappointed that not more small EVs are on the market. I am too and hope that this changes in the near future.
Fox business has a x-Chrysler exec hack telling their TV audience today that all the major manufactures have the technology, but EV's just aren't selling! Sort of a cart of and the horse logic statement, but in reverse. Bloomberg News today...“Our latest forecast shows sales of electric vehicles (EVs) increasing from a record 1.1 million worldwide in 2017, to 11 million in 2025 and then surging to 30 million in 2030 as they become cheaper to make than internal combustion engine (ICE) cars. China will lead this transition, with sales there accounting for almost 50% of the global EV market in 2025.” Fox and CNBC today both failed to look no further than Tesla's growing sales and order backlog.
anyone else think the huge front radiator grill on the Mercedes-Benz EQC is really dumb for an all-electric vehicle?
M-B has over 90 years of brand-recognition invested in their look (e.g., 3-point star, the grill). Since BEVs need cooling for their batteries, why not integrate it into their corporate style?
Obviously designed to compete with the Tesla Model X 75D, not the Model 3. I'm sure it will do well, especially in Germany but not in America.
Not sure when it will actually be sold in Germany. Possibly not before 2020.. :rolleyes:
It tells me they still just don't take this electric category seriously. With all the sound damping materials Mercedes is known for, you would think they would have been the first to embrace the electric category to provide the silent ride they strive to achieve. But no, they are making statements trying to convince their clientele that vroom, vroom is a thing of the past. The vehicle pictured is not of a Scandinavian aesthetic either in or out, as they try to claim.
I AM stuck on the old 350SL, 460SL, 560SL, and 300 SEL convertible/sedan styles, and the BMW 320 style. And I liked the Datsun 240. I like simple clean lines and uncluttered interiors. So, I do have a reference point and maybe I'm stuck in the past refusing to embrace new designs but, then so is Tesla.
