Electric Vehicle

Report: Mercedes To Target Tesla Model 3, Y With New EVs

The Mercedes-Benz Concept CLA-Class seen from a front quarter angle

The Tesla Model Y and Model 3 are America’s two best-selling electric vehicles. That may be understating their popularity. The Model Y was the most-produced passenger car on the planet last year.

But Tesla’s rivals smell blood in the water. The company has suffered declining sales through the first two quarters of the year. It has seen its share of the EV market fall below half for the first time. With CEO Elon Musk courting political controversy daily, many car shoppers interested in a Tesla might, for practical reasons, be tempted by a similar car from a less controversial brand.

Enter: An all-electric version of the Mercedes-Benz CLA sedan and a similar crossover.

Industry publication Automotive News reports, “Mercedes-Benz will deliver an electric version of the four-door CLA coupe to the U.S. late next year — the first in a fleet of next-generation EVs. A battery-powered crossover variant could follow in the first half of 2026.”

The pair would target Tesla’s top sellers directly.

Mercedes previewed the sedan version last year with the Concept CLA-Class. A sleek, sporty 4-door with coupe-like lines, it featured an all-glass roof. Mercedes claimed it could travel up to 400 miles between charges.

A Mercedes dealer who asked not to be identified told AN that a crossover version “would give Mercedes a price-competitive answer to Tesla — and potential Chinese automakers — in a segment dominating 80 percent of new-car sales in North America.”