Tesla Cuts Ties with Mercedes-Benz

Mercedes-Benz is moving on towards manufacturing its next flagship car model, the Mercedes-Benz B-Class Electric Drive, without the collaboration and partnership of Tesla Motors, based in Palo Alto, California.  Tesla Motors and Mercedes-Benz have had a successful seven year run and now the German Automaker Giant are confident that they can make the rest of the journey into the designing of the next B-Class Electric driven Car by themselves which is a fully electric compact five-door hatchback.  Without taking away any credit from Tesla Motors, situated in Fremont and Palo Alto, California, they have done a magnificent job with Mercedes-Benz for seven years on this project and on the previous versions of this fully electric car, as mentioned by the head of Mercedes electric-drive development, Mr. Harald Kroeger.  Tesla Motor had been supplying Mercedes-Benz with two key components for its B-Class electric driven car which are the battery and a drivetrain plant, respectively which Mercedes-Benz are confident they can manufacture and provide on their own from now on.  Tesla Motors had also invested 500 million Euros in the said project and both corporations are in the talks as to how best they can use this capital to manufacture their next electric-driven car model and also the possibility of a good Return of Investment.  The decision to part ways with the Palo Alto and Fremont based automaker Tesla Motors came at a time when Daimler invested 500 million Euros in Tesla, which were not appreciated by Mercedes-Benz and unhinged the overall success of their B-Class Electric hatchback car to a certain degree and set them behind schedule.  As to the specifications of Mercedes’ next flagship car, the B-Class Electric Car, it has been confirmed that the car will have a boost in terms of mileage distance and range than its previous model, which could travel approximately 100 miles on a fully charged battery.  Mercedes-Benz has also cut costs in terms of manufacturing and procuring the car for customers.  The B-Class model, as Mercedes-Benz is confident will be priced at or below US$30,000, far below than Tesla Motors ‘Model 3 Sedan’ which is priced at US$35,000.  The B-Class hatchback electric-driven car is set to be launched in the market between 2017 and 2018.  Toyota had a similar issue and fallout with Tesla Motors, having invested in Tesla as well as selling Toyota’s Fremont factory to Tesla in exchange of procuring Tesla’s battery packs and drivetrain to manufacture the RAV4 crossover electric vehicle which unfortunately has not seen the light of the day and production was halted due to design failures.  Toyota, since then has concentrated its efforts on developing a functioning hydrogen fuel cell technology to incorporate into its hybrid electric cars.

After the unveiling of their new model of electric car, Tesla has promised to fully mass produce the vehicle by 2017. Along with its giant factory at Reno and massive expansion of their supercharger stations countrywide, only time will tell how costly it will be for Tesla to cut off ties with a major competitor.


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