Mercedes announces new electric concept cars that have a greater range than any Tesla model

New “close-to-production” concept cars from Mercedes-Benz have recently been unveiled, and they potentially outperform Tesla cars by travelling more than 466 miles on a single charge. In contrast, each Tesla vehicle has a range of no more than 380 miles.

The German automaker’s Concept CLA Class includes four new models: a sedan, a station waggon, and two SUVs. It was unveiled on Sunday at the IAA Mobility car exhibition in Munich. The business does not give a precise start date for production.

Compared to Tesla’s (TSLA) Model 3 and Model S, which have the longest ranges of the brand and can each travel for less than 375 miles on a single charge, the vehicles will each have a range of more than 750 kilometres (466 miles).

As additional evidence of German automakers’ efforts to stave off expanding EV competition, BMW also made a stir at the show by announcing a new electric vehicle that claims a longer range and faster charging.

Large European automakers like Volkswagen and Renault are already feeling the pressure from Chinese rivals’ lower-cost EVs, while Tesla has vowed to make its manufacturing close to Berlin the biggest auto plant in Europe.

BMW’s Vision Neue Klasse car, which is still only a concept, uses new created battery cells that have a 20% more energy storage capacity than those now in use by the business. According to the firm, overall charging speed and range are anticipated to improve by up to 30% from the brand’s prior models.

BMW board member Frank Weber said in a statement that “With the Neue Klasse, we have embarked on the biggest investment in the company’s history.”

The new car is scheduled to debut in 2025.

According to CEO Ola Källenius, the Concept CLA Class is intended to represent “an entirely new all-electric segment of entry-level vehicles at Mercedes-Benz” and attract more buyers.

The new cars, according to him, “could easily take you from Munich to Hamburg on a single charge.”

Given that range anxiety is frequently mentioned as a key factor in consumers’ judgements on whether to purchase an EV, the legacy carmaker may be able to attract more customers with the extended range.

While describing Mercedes’ G class, a range of SUVs, Källenius also hinted at a different impending car, saying: “The little G will be electric.” The new car, which is also a compact SUV, may compete with Tesla’s Model Y.

UBS analysts stated in a research on Thursday that they were “strongly reassured” about Mercedes’ product pipeline for the following two to three years after seeing a sneak peek of the company’s most recent models.

The company’s management also expressed confidence that the new EVs would “reach the same profitability” as their gas-powered counterparts, the analysts observed, which was another promising indicator.