This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Coming Soon: The Tesla-Based Mercedes

Stocks in this article: TSLA F TM GM DAI

No car in the market today at any reasonable price (say, under $100,000) matches the Volt drivetrain's capability of driving 25-50 miles on electric, and then continuing like any other car.

One year from now, BMW will start to deliver the i3, which will be a variant of the Volt, but with a greater emphasis on the electric part rather than the gasoline engine. It will be the first really interesting such car, in my opinion.

You can think of it as this: A battery-electric drivetrain and a small gasoline/diesel engine go together like peanut butter and banana on an Elvis Presley sandwich. They complement each other almost perfectly. Drive on electric most of the time (90%, 99%, whatever) and then have the small gasoline engine ensure you never get stuck when you eventually have to drive longer.

So what about the all-electric car? There is some market for this already today -- just witness Tesla's sales success. I think all-electric cars can soon exceed 1% of the total car market, even without much incremental development of a charging infrastructure. Tesla, Toyota, GM, Ford, Mercedes, BMW and other brands will capture this market, and of course some of them have already started.

Just like Tesla helped Toyota ensure the Toyota RAV4 became an outstanding all-electric car, it is likely ensuring the new all-electric Mercedes becomes an outstanding car as well. It should be on sale in the first half of 2014 for what I estimate to be $46,000 before tax incentives.

The Tesla-based Mercedes will have enormous torque, silent and vibration-free operation, one-pedal driving with regenerative braking, and make for a near-zero maintenance experience over the car's lifetime. Just inflate the tires correctly, rotate the tires, eventually replace the tires -- and once every 200,000 miles or so refresh the brakes.

That's all there is to it. Range anxiety aside, an all-electric car has some very unique and positive properties.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs