This Day On The Street
Continue to site
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

The Tesla-Based Mercedes (as Seen Through Google Glass)

Notice the good photo quality from Google Glass, by the way?

Mercedes aims to have this car available for sale, at least in California, in the first half of 2014. The price has not yet been set, but I imagine it will be below $50,000 -- even before tax incentives.

Mercedes has stated the range will be at least approximately 100 miles. This would put it in the same league as the equally Tesla-based Toyota (TM) RAV4 EV -- but well below Tesla's own models. Of course, Tesla's own models start around $70,000.

That said, Mercedes had better hope this Tesla-based electric mini-minivan will help mitigate the hemorrhaging in sales away from S-Class to Tesla's corner. It would be hard to argue that what's happened to premium car sales in Silicon Valley isn't eventually going to happen in other geographies as well, at least to some degree, with perhaps a two- to three-year lag.

In the near term, Mercedes is living high on the hog selling less-expensive cars. It is in the process of launching many new cars this year priced under $50,000, some starting at or near $30,000.

That will probably continue to mask the sales of higher-end cars to Tesla for another year or two -- just like radiation can help keep the cancer away for a while. Maybe.

Eventually, though, the specter of a Tesla priced at or even below $40,000 a few years down the road has to scare Mercedes stiff. Hence, the importance of getting this all-electric car to market as soon as possible.

Behind the scenes, Mercedes is surely preparing an onslaught of more all-electric and plug-in hybrids that will hit the market no later than the 2016-18 timeframe. Little is known about these -- except the logic that they will have to span the entire Mercedes range and that without them the company could face total collapse in the face of Tesla's superior products.

Mercedes has been open about its intent to launch the Tesla-based Mercedes in 2014. It has talked about it and shown it to journalists at a controlled event in New York City. However, in real-life traffic, it's been a bit too slippery for the cameras.

That is, until Google Glass came in handy the other day.

Tesla 1, Mercedes 0

Also: Google Glass 1, Mercedes 0

We look forward to driving the Tesla-based electric Mercedes no later than early 2014. Hopefully, it perform extremely well and be priced attractively.

At the time of publication the author was long GOOG.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TSLA $231.11 0.64%
AAPL $117.82 -0.18%
FB $105.47 0.06%
GOOG $750.27 0.28%
YHOO $32.95 -0.63%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs