Tesla Developing a Mercedes Electric Vehicle

MB A-Class electric

Amid reports of losses and progress by Tesla Motors to develop its own lineup of electric vehicles comes news that the carmaker is also helping Mercedes-Benz to develop its own EV.

In Tesla's latest filing with the Securities and Exchange Commission, the electric startup says it is fully developing a powertrain for a new all-electric Mercedes vehicle. Tesla will design the electric motor, gearbox, inverter and software that will go into the EV, according to the filings.

This project is separate from another one in which Tesla is contracted to give 1,000 lithium-ion battery packs to Mercedes. In exchange, Mercedes made a large investment in Tesla and now owns about 10% of the company.

Tesla continues to help develop an electric powertrain for the Toyota RAV4 EV, which is scheduled to go into production in the middle of this year.

Tesla also announced year-end revenue of $204 million, up 75% from 2010. Despite bringing in more money, Tesla lost about $254 million in 2011, which is a 65% increase in losses compared with 2010. Tesla expects revenue to increase significantly in 2012 once the Tesla Model S goes on sale. The company forecasts year-end revenue to increase to around $550 million to $600 million, with most of the money coming from the latter half of 2012.


Amuro Ray

This is sad news to the EV world indeed, imho.

This tells me that MB is throwing in the towel in R&D, and just outsourced the entire thing to Tesla. FYI, Tesla was supplying the battery to the 2nd gen Smart EV, but MB "was" moving the development in-house for the 3rd gen. Not sure how it's going to be like now.


The Germans will need lots of help to catch up to GM.

Amuro Ray


You mean Nissan or Tesla, right?

When's the last time you've seen a GM EV?

Outsourcing their R&D to good old California. I can live with that!


Eh, Tesla's just so far ahead of everyone else in EV development that this makes sense.


Tesla`s system is based on work done by the main engineer who worked on GM`s milestone EV-1. Tesla stands on GM`s shoulders and now Mercedes does too.

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