Tesla to build electric Mercedes

Tesla and Daimler are set to collaborate on a new electric Mercedes-Benz. According to, the fourth-quarter earnings report released by Tesla earlier this week revealed the company is set to supply a full powertrain for an unnamed electric Mercedes-Benz in the near future. Those components include a motor, transmission, inverter and all of the software necessary to keep the car whirring along. Funds from the deal are supposed to begin trickling in by the second quarter of this year, though no details about production timing or volume were available in the report.

The two automakers aren't strangers. Daimler is an investor in the small electric vehicle manufacturer, and Tesla already supplies battery packs for the low-production Smart ED. Mercedes-Benz made waves at the 2011 Frankfurt Motor Show when it unveiled the B-Class E-Cell Plus. At the time, the vehicle boasted a lithium-ion battery sourced from a joint venture between Daimler and Evonik, though it's certainly possible the German automaker has changed course on the five-door. Then again, the B-Class E-Cell Plus was an extended-range hybrid, whereas the Tesla earnings report seems to hint toward a full-electric model. Consider us curious.

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