Luxury car maker Mercedes Benz is planning a new distinct line of electric vehicles, challenging BMW and Tesla, company sources have confirmed.The sources – who asked not
be identified – said Mercedes will add two electric sports utility vehicles and
two sedans. They said Mercedes will create a new sub-brand for the cars, though
a name hasn’t yet been chosen.

Mercedes had previously stuck to simply adding batteries and electric motors to
existing models – recent example pictured.

But sales have been disappointing, and Mercedes now appears to recognise that a
more innovative and whole-hearted approach is needed to compete with Tesla.

In addition to the e-cars, Mercedes parent Daimler is planning to deliver
its first all-electric heavy-duty truck by 2020. The company has also promised
electric versions of each of the mini-vehicles in its Smart city-car brand.

Meanwhile a four-year-old Salt Lake City start-up, Nikola Motor Co, plans to
unveil in December a working prototype of a natural gas/electric semi-trailer
truck  said to be designed for heavy road haulage.