Mercedes-Benz Takes On Tesla With Electric SUV EQC

Electric car manufacturer Tesla has plenty of hurdles to cross before it can meet its goals and become profitable and increased competition will only make its journey more difficult. On Tuesday, Mercedes-Benz became the latest established automaker to launch a fully electric vehicle, with the announcement of the Mercedes-Benz EQC.

The electric SUV, which Mercedes-Benz announced in Stockholm, will go into production in 2019, according to CNBC. It will be produced at the firm’s plant in Bremen, Germany, on the same production line as its traditional, combustion engine vehicles. Mercedes-Benz board member Markus Schafer said the approach would help maximize production efficiency.

"Our decision to produce electric vehicles on the same line as models with combustion engines enables us to respond flexibly to demand and use plant capacity to best effect,” Schafer said, per CNBC. “In this way, we can continue to ensure both high efficiency and top quality with well-proven production processes."

Schafer’s comments may remind some of the production problems Tesla faced earlier this year with its Model 3 vehicle. The company had to erect a large white tent outside its Fremont, California, plant in order to meet production goals earlier this year.

The Mercedes-Benz EQC’s battery will reportedly take it 450 kilometers, or almost 280 miles. By comparison, the Tesla Model 3 gets 220 miles out of its base battery, or 310 miles out of its extended battery.

More competition from legacy car manufacturers may be better for consumers, but it represents another obstacle for Tesla. Elon Musk’s car company has dealt with several controversies throughout 2018 as it sits on net debt of about $10 billion.

Tesla opened up Model 3 orders to the general public in July, but a group of analysts in August criticized the car for its build quality.

Aside from Mercedes-Benz, Tesla faces competition from other established automakers like Chevrolet, BMW and Audi in the electric vehicle market. Even tech giant Apple is rumored to join the fray in the next several years with its “Project Titan” program.