But that doesn't mean Mercedes-Benz wants to see Tesla fail... not just yet

Tesla may be the most recognised name in the electric vehicle (EV) world, but Mercedes-Benz is poised to strike with an all-new EV to debut in September.

As previously reported, the “dangerously fast” Mercedes EV is claimed to offer a greater range than the Tesla Model S, at around 500km, and will be priced similarly. Think between $150,000 and $200,000.

But most importantly, insists Mercedes-Benz, it won’t be hamstrung by manufacturing limitations.

“Tesla’s challenge will be making the numbers of cars they say they’re going to make in the time frame they say they’re going to make them,” stated David McCarthy, Mercedes-Benz Australia’s Senior Manager of Coporate Communications.

Telsa currently has orders for more than 350,000 Model 3 cars, which has netted the company more than $300 million in deposits alone. If it delivers on the orders, it will reap around $15 billion in revenue.

But the Mercedes exec intimated that he’ll believe it when he sees it.

“The relatively easy part is selling someone an EV,” he said. “The hard part is actually manufacturing one and at a price someone is willing to pay.”

Mercedes-Benz’ all-new EV sedan will be the star of its exhibit at the 2016 Paris motor show in late September, but McCarthy says the car’s modus operandi is not to be a Tesla-killer.

“Look, [Daimler CEO] Zetsche’s often said that what Tesla has done has made EVs sexy, and everyone knows what they are now.

“We’re in business to make money, and is our EV a Tesla killer? I don’t know, I haven’t seen it yet. But we wouldn’t be doing it unless we thought we could sell it.

“It’ll be in a price bracket similar to Tesla model S, have a similar cruising range, but it’ll be a Mercedes, so I think Tesla probably have good reason to be concerned about it,” he said.

The production version of Mercedes’ new EV isn’t expected to hit the streets until 2018 but with plans afoot to introduce energy storage solutions and battery pods in homes in Australia this year, Mercedes is confident that its EV strategy is sound.

As EV research and development begins to bear fruit with more and more car makers plumping up with real-world machines – not just vapourware – EVs appear to be the way of the future. But McCarthy cautions that the local market is still anxious about EVs.

“Australia is a very different marketplace to the USA or Europe, where population and urban densities are greater, making for easier charging. In Australia range anxiety is still a huge issue.

“After all, who wants to be broken down on the Hume Highway with no way of recharging?”

The Benz exec asserted that range anxiety was “absolutely” the biggest hurdle facing EV acceptance in Australia, but the technology is getting better. And plug-in hybrids are a good interim measure too.

“I’ve got a plug-in C-Class, so most days I can drive to work on pure electricity. But that’s a 30km range. Get to 100km range and then you’re talking. A Nissan LEAF has a 150km range, but a pure EV has to really be at the 400-500km range.”

Mercedes-Benz used to have a significant shareholding in Tesla but has since divested itself of all interests. With Benz finally getting serious about EVs, that doesn’t sound the death knell for Tesla, opined McCarthy.

“We were a shareholder for quite some time, we use some of their drivetrain in our B-Class EV; we supply them with components for their cars.

“Tesla has done a huge, amazing job. The challenge for them is to get their production levels where they say they need to be, by the time they want them to be, and make money.”