Tesla's Musk Wishes Mercedes Would Get Serious About Competing - Add A Zero To That $1 Billion EV Investment

My bet is that just as soon as the auto industry believes there is sufficient profit to be made in mass EV sales, more and more automakers will get more and more serious about producing more and more EVs.

For the time being, EVs are tiny, niche market with about 1% market share worldwide, and about 2% market share across the US. Who wants to fight (or invest heavily) for a piece of that pie?

And if we look to Tesla as an example of what's possible, making a profit is not part of that "success formula" just yet. So Mercedes, don't sweat the shade that Musk is casting your way. And besides, the Nissan Leaf EV outsells Tesla (even though it has a shorter range!), so why is Musk not bashing Nissan?

Tesla Model S easily outsells the Leaf, even though it costs three times as much. The Chevrolet Bolt also sells more.

Near as I can tell - this investment is ONLY towards Electric car and Battery production in the USA - the development costs of the cars and batteries themselves are not part of the package - since they will be done worldwide.

Unless they are stupid enough to think that there will be a HUGE market for expensive EVS - then a Billion Dollars will easily produce the plants and equipment required to produce the cars - and the batteries.

I continue to believe - and have been supported by actual sales figures - that EV demand is reaching its limits already - and unless they make a law requiring them - we already have enough supply. THe question will be - do you want a PREMIUM EV from a true PREMIUM supplier that has dealers and service at a place near you - or do you want a tesla - and can afford a tow across whole states to get to a service department?

If Mercedes "got serious", Tesla would be out of business. But as others are saying, the EV market is on the skids at the moment.

More importantly, is the EV market even a profitable one, yet? I'm seriously asking this question because I don't have a clue. All I've ever heard is that Tesla isn't making a profit only because Musk continues to reinvest in the growth of the company (which I'm sure makes sense).
At the same time, would Mercedes really need to invest $10 billion? They have established facilities that would only require modifications to accommodate production of EV cars. They have an established dealer network. They have an entire company of engineers, testers, marketers, etc.

Mercedes is at a point where their vehicles will not meet EU 2020 emission standards. They will run the risk of being run over by VAG in Europe and in the US by Tesla if they don't offer competitive EVs. Survival will trump profitability in the short term - and everyone knows it except of course the US Big 3. It doesn't help that China is going to ban gasoline and diesel very soon. There is no way back for Mercedes, or any automaker who wants to survive.

Henry. If Mercedes decides to spend half their R&D budget on EV's leveraging all the off-the-shelf stuff to make an EV, how long would it take them to surpass Tesla? Mercedes doesn't have to invest in what it takes to design and assemble a range of vehicles as Tesla is doing. They already have it. "Very Soon" in China is 2030 and the others 2040. Plenty of time. Also the German government isn't going to let Mercedes et.al. die. All those autoworkers vote!

@Vette71: "how long would it take them to surpass Tesla?" - well show me the products then we'll talk.

MB already lost sales in the S-class due to the Model S, wait until the Model 3 floods the market next year then see how the C-class will fare ? By this time next year, the picture should be clear enough for everyone to see.