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BMW and Mercedes Remain behind Tesla despite Announcing Major Projects

In recent times, BMW and Mercedes have made moves to catch up with popular EV maker Tesla Inc (NASDAQ: TSLA) as they also handle competition from Chinese players. The German manufacturers are currently facing rising competition from Chinese players, and in addition to dealing with the rivals, BMW and Mercedes are in the race to meet up with Tesla, which has exploded to become a giant in the electric vehicle industry.

EV manufacturers are making efforts to get to the top of the game. BMW and Mercedes-Benz unveiled electric concept cars and new platforms for their future battery-backed vehicles. The auto leaders revealed the developments as part of the IAA Mobility motor show in Munich, Germany. Referred to as a “revolutionary development” for the company, Mercedes showed its Concept CLA Class. This unique vehicle is built on a new platform that supports incoming future battery cars from the company. Per the German automaker, Concept CLA Class boasts a range of 750 kilometers (466 miles), among others. In addition, it can cover a range of 400 kilometers with just 15 minutes of charging.

Mercedes CEO Ola Kallenius boasted of the vehicle’s features in a comment to CNBC’s Annette Weisbach. Speaking on Sunday, the chief executive said:

“With those efficiency numbers, that kind of range, that kind of fast charging, I am not aware of any vehicle, in that class that can match that.”

BMW & Tesla Yet to Catch Up with Tesla

As Mercedes hit the industry by unveiling its latest vehicle, BMW also made a show with its “Vision Neue Klasse”, trying to catch up with Tesla. This further emphasizes the automaker’s push in the EV space as Vision Neue Klasse is the company’s new architecture for its EVs. According to BMW’s schedule, the first vehicles based on the new platform will kickstart production in 2025.

Like Mercedes CEO, the chief executive officer of BMW, Oliver Zipse, also expressed his confidence in the achievements. In a comment to CNBC’s Arabile Gumede, Zipse noted:

“In only two years’ time, these cars will hit the road and with that, overall, we lead BMW to a new era of innovation and sustainability. That’s the purpose of our show here at the IAA.”

Speaking further, the BMW boss believes that the company is positioned to record X2 EV sales this year. He added that 15% of the company’s global sales will be battery EVs by December ending.

Despite the major moves by both BMW and Mercedes, both companies are still behind Tesla. Notably, these companies have built new platforms that place them on new levels and show that they are capable of making waves in the EV market. A senior research analyst at Bernstein Research, Daniel Roeska, said the new platforms “will close a large portion of the gap” between Tesla and the likes of BYD.

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BMW and Mercedes Remain behind Tesla despite Announcing Major Projects