The competition for Tesla Motors continues to intensify. Mercdes plans to release a minimum of 10 electric vehicles within the next few years under its new brand, EQ, which stands for “electric intelligence.”
The first model will be an all-electric sport utility vehicle for around $55,000. It will have a range of just over 300 miles—slightly less than a Tesla Model X.
Mercedes says its army of EVs will cover all vehicle segments, from compact to large and mid-range to luxury. The carmaker plans to invest more than $1 billion in battery technology as it expects electric models to account for one quarter of all sales within a decade.
Overall, electric vehicles remain a small market. Battery-powered cars are forecasted to account for just 3% of global demand in 2025, according to research from IHS Markit—even though “range anxiety,” consumers’ top concern with EVs, is largely a myth. According to a recent study published in Nature Energy by researchers from MIT and the Santa Fe Institute, the vast majority of drivers would not be affected by the limited ranges of today’s electric cars. The study suggests 87% of motor vehicles on the road in the US could be replaced by electric vehicles without worry of charging throughout the day.