It's actually questionable whether they can produce an electric vehicle that's appealing to the masses at the right price point, and not another Fisker Karma or a Faraday (too soon?).
Tesla's business model follows the idea that electric cars are just giant battery packs sold in nice wrappers with some software thrown on top to drive the thing. Therefore the only way to make money is to enjoy healthy margins on battery packs and software features - the battery pack itself is commoditized.
Does Mercedes have an "in" or any significant buying power in lithium-ion market? If not lithium-ion, do they have a significant R&D investment in any other fields (fuel cells, hydrogen)? Do they have any significant investment into self-driving? They seem to have outsourced that to Uber https://www.usatoday.com/story/money/cars/2017/02/02/uber-me... If not self-driving, are there any other software features peculiar to Mercedes vehicles that make them stand out of the crowd?
What are then the significant cost advantages that will allow Mercedes to throw in the luxury salons it's known for and still meet the market's price point? Seems like they're destined to produce either another eGolf (83 mile range, affordable, but next to zero sales) or BMW i7 ($135,700 base).
Tesla's business model follows the idea that electric cars are just giant battery packs sold in nice wrappers with some software thrown on top to drive the thing. Therefore the only way to make money is to enjoy healthy margins on battery packs and software features - the battery pack itself is commoditized.
Does Mercedes have an "in" or any significant buying power in lithium-ion market? If not lithium-ion, do they have a significant R&D investment in any other fields (fuel cells, hydrogen)? Do they have any significant investment into self-driving? They seem to have outsourced that to Uber https://www.usatoday.com/story/money/cars/2017/02/02/uber-me... If not self-driving, are there any other software features peculiar to Mercedes vehicles that make them stand out of the crowd?
What are then the significant cost advantages that will allow Mercedes to throw in the luxury salons it's known for and still meet the market's price point? Seems like they're destined to produce either another eGolf (83 mile range, affordable, but next to zero sales) or BMW i7 ($135,700 base).