Home / UK News / Look out Tesla. This new Mercedes Benz ‘could be a video game changer,’

Look out Tesla. This new Mercedes Benz ‘could be a video game changer,’

The latest all-electric luxury vehicle from Mercedes-Benz has the possible to enhance the understanding of the entire brand name and will be a “Tesla fighter,” according to Deutsche Bank.

Experts at the bank said on Monday that the launch of the full-size luxury EQS sedan “could be a video game changer” for Mercedes-owner Daimler, in addition to other German original devices makers (OEMs), like competitors Volkswagen Group and BMW.

Daimler DAI, +1.42% stock increased near 2% in Frankfurt trading on Monday and shares in Tesla TSLA, +3.69% were up more than 3% in New York by midday.

The EQS is set to release on Thursday, and Deutsche Bank experts led by Tim Rokossa “think the automobile will likely set the benchmark in regards to technical features, as well as design and quality” across battery-electric lorries (BEVs).

Also check out: How completion to a South Korean Battery Fight Paves the Way for Ford and Volkswagen’s Electric-Vehicle Race

The car will be Mercedes’ first on its brand-new dedicated electric-vehicle architecture and will have a range of approximately 770 km (478 miles). That will make it the longest-range BEV on the marketplace, the experts stated, taking on maybe just Tesla’s Design S Plaid+.

Tesla’s Plaid has a projected series of 628 km and the Plaid+ should have the ability to run for 837 km, however the Deutsche Bank experts noted that these are estimated figures from the business.

The quality of the EQS’ interior and the addition of the brand-new hyperscreen “makes the EQS probably the first real ‘high-end BEV,’ on the market,” the experts stated. Mercedes’ hyperscreen, introduced previously this year, turns almost the entire control panel into a screen user interface that utilizes artificial intelligence-enabled software application.

The group at Deutsche Bank also said that the new sedan could help move the public perception of Mercedes from tradition carmaker to high-end electric-vehicle business, “which ought to be appreciated by investors.”

Deutsche Bank is mostly bullish on Daimler, and has a target price of EUR80 ($95) on the stock– recommending the shares have legs to climb more than 6% greater. The German bank likes the group’s electric-vehicle technique, which concentrates on the luxury Mercedes-Benz brand name to increase profits, as margins are broader at the premium end of the automobile market.

More: Renault Sells Its $1.4 Billion Stake in Daimler. Why It Was Great Timing.

Daimler, like other European car makers, is leading a monumental shift to transition away from automobiles powered by internal combustion engines in favor of electric cars.

Europe ended up being the world’s largest market for electrical lorries in 2020 amidst a pedal-to-the-metal push to increase EV adoption, with extreme fines for cars and truck markers whose fleets don’t satisfy new emissions targets and generous incentives for purchasers to sell their gas drinkers.

The pivot toward electrical lorries in Europe has actually benefited domestic producers and largely come at the expense of Tesla. Tesla’s shipment volumes in the 18 crucial European markets fell by 12% in 2020 from 2019 levels, according to information put together from main sources by automotive expert Matthias Schmidt.

According to Schmidt, who releases the European Electric Vehicle Report, this saw Tesla’s market share of the essential European battery-electric-car market more than halved– from 31% in 2019 to 13.2% in 2020.

Tesla controls 7.5% of the European market to Daimler’s 7.7% so far in 2021, according to Schmidt, though the American business led by Elon Musk is expected to capture more market share as the year advances, because its delivery schedule is weighted towards completion of each quarter.

Plus: Zero-Emissions Cars Are Bringing Interruption to the $1.5 Trillion Trucking Market. View These Stocks, Says UBS

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