Tesla Developing a Mercedes Electric Vehicle

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.

Cars.com Reviews the 2012 Mercedes-Benz M-Class

Like the comfortable and composed S-Class sedan but need more room? The M-Class midsize SUV should do the trick, says Cars.com Editor Mike Hanley, who tested the ML350 Bluetec diesel version and found it powerful, fairly quiet and pretty fuel efficient for a vehicle this size.

But diesel costs several cents more than premium gas, and Hanley also points out that the Bluetec version starts around $1,500 more than the base gas version. Is it worth the price?

2012 Mercedes-Benz M-Class Review

Mercedes to Update In-Car Connectivity Service

Mercedes-Benz's subscription-based telecommunications service, called mbrace, will get a major overhaul this spring.

The service will harness the power of its integrated 3G cellular connection to add more internet services and features to the system, allowing owners to access Facebook, Google, stock info, Yelp and news headlines via newly developed apps, as well as the ability to surf the web via an integrated browser.

Furthermore, mbrace will now have over-the-air updates. Most in-vehicle operating systems, such as MyFord Touch or Chevrolet's MyLink, require their multimedia systems to be updated manually, usually through a USB jump drive. The new mbrace system — technically called mbrace2 — is always online and will upgrade automatically as needed.

2013 Mercedes-Benz SL-Class: Photo Gallery

Mercedes-Benz's long and lean hardtop convertible gets updated styling, a lightweight aluminum body, and a more potent, but fuel-efficient engine for 2013.

More 2012 Detroit Auto Show Coverage

Under the hood is a new 429-horsepower, 4.6-liter V-8. It's got 516 pounds-feet of torque. Mercedes-Benz says the new engine offers a 12% improvement in horsepower, thanks in part to standard start-stop functionality and seven-speed automatic transmission. It looks as fast as it is: The 2013 SL-Class can do zero to 60 mph in 4.5 seconds.

2013 Mercedes SL-Class: Up Close

There are three important milestones for judging a new car design: The first is when you see it in person for the first time. The second is when you see it out on the street and in motion. The third is the test of time. Having just passed the first milestone with the redesigned 2013 Mercedes SL-Class, I'm very much on the fence.

More 2012 Detroit Auto Show Coverage

Even here at an auto show, the red and silver SLs on the floor come across differently. It depends on the lighting and the angle. While the red paint is striking, the silver on the limited-production Edition 1 model seems to blend better with the car's bold new shapes and appliques.

Which Cars Fit Three Car Seats?

Parents are often searching for the automotive holy grail: a car that's not a minivan and can fit three child-safety seats across the backseat. It's a short list. In the nearly two years that Cars.com editor Kelsey Mays, Cars.com photographer Ian Merritt and I have been installing car seats into test vehicles, we've come across only a handful of cars that can hold three car seats across a backseat.

We recently tested the 2012 Mercedes-Benz M-Class and it fit three car seats in it. To be considered a fit, there must be enough room between the booster seat and infant-safety seat for a child's hand to reach the seat belt buckle.

2013 Mercedes-Benz E-Class Hybrid at the 2012 Detroit Auto Show

• Competes with: Lexus GS 450h, BMW ActiveHybrid 5, Infiniti M Hybrid 
• Looks like: Mercedes won’t let anyone win the hybrid race without a fight 
• Drivetrain: 302-hp V-6 gas/electric hybrid powertrain 
• Hits dealerships: Mid-2012

Mercedes-Benz will unveil a new hybrid system for its E-Class sedan at the 2012 Detroit auto show. The trim, called the 2013 Mercedes-Benz E400 Hybrid, will feature compact hybrid components attached to Mercedes’ standard 3.5-liter V-6.

The gas/electric hybrid system — which includes auto start-stop, regenerative braking and pure electric driving, depending on speed — has an estimated 24/31 mpg city/highway rating and a 27 mpg combined rating, according to Mercedes. The system, which was originally featured on the S-Class, improves gas mileage by about 17% over the standard E350. The compact nature of the hybrid system means that neither passenger nor cargo space has been compromised, Mercedes says.

Naughty or Nice: Attention Grabbers

The two cars that get the nod here have already been highlighted or lowlighted in our 12 days of year-end remembrances.

More Naughty or Nice Picks

Being an automotive journalist can be cool. I still remember pulling out of the parking garage across from Cars.com headquarters in a bright orange Dodge Challenger right when it had gone on sale and being chased by a grown man - a large one - half a block screaming, "Where did you get one!"

This year we had similar experiences, but nothing quite that colorful.

2013 Mercedes-Benz SL-Class: First Look

• Competes with: BMW 6 Series
• Looks like: A more mature SLK-Class 
• Drivetrain: 429-hp, 4.6-liter V-8; seven-speed automatic transmission; rear-wheel drive
• Hits dealerships: Spring 2012

Mercedes-Benz has updated most of its vehicle lineup with more fuel-efficient models in a relatively short amount of time, including the 2012 C-Class, M-Class and SLK-Class. The latest model to receive some efficiency gains is the totally redesigned 2013 Mercedes-Benz SL-Class.

Important takeaways include a body almost exclusively made out of aluminum and a new powertrain. 

The new lightweight aluminum body and aluminum steering knuckles and suspension arms, along with other weight-saving measures, shave off 275 pounds compared with the SL’s predecessor. 

2012 Detroit Auto Show: What To Expect, Updated

Twenty-five days separate us from the 2012 Detroit auto show. Of the more than 36 new cars coming to the show, we now can confirm at least 28 vehicles will be there.

Unlike the 2011 L.A. Auto Show, the Detroit show seems to focus heavily on concept cars. The most important production cars we know of now include the 2013 Ford Fusion, 2013 Dodge Dart, 2013 Acura RDX, 2013 Toyota Prius c and the 2013 Cadillac ATS.

This week we learned that the 2013 Fusion will be at the show and a Lincoln MKZ concept, as we previously reported. The Fusion will be introduced at the Consumer Electronics Show in Las Vegas on Jan. 10 and at the Detroit auto show on the same day. The next-generation Mercedes-Benz SL-Class will also be shown off (shown above).

There will be some thinly veiled concepts to look out for, too. They include the Acura ILX Concept, a compact car with a hybrid variant, and, more importantly, the 2013 Honda Accord Coupe Concept. If past Honda concepts are any indication, it will pretty much be the new Accord that will go on sale later next year.

For now, those are the major releases we know about. We’ll have more info once the 2012 Detroit auto show gets under way Jan. 9.