Mercedes-Benz is currently working on its own sub-brand of electric vehicles to take the fight to Tesla and BMW, reports Bloomberg. Now that alternative-fuel cars have the potential to become profitable and are gaining stardom, the automaker is planning on entering the segment. According to unnamed sources, Mercedes will enter the segment with two electric sedans and two SUVS.

The vehicles will slot into the automaker's electric sub-brand, which, according to the sources, has not been named yet. Earlier this year, the automaker revealed plans to unveil an electric car at the Paris Motor Show in September. Previous reports indicate that a high-performance all-electric sedan concept is what Mercedes will unveil. The all-wheel-drive concept will have a range of roughly 300 miles on a single charge and a price tag in the neighborhood of $200,000.

Mercedes will make the upcoming electric cars at its factory in Bremen, Germany, claims a source that's familiar with the automaker's plans. Starting next year, the Bremen plant will start to build a fuel-cell electric version of the Mercedes-Benz GLC SUV that can be charged with electricity from a wall socket and hydrogen. While a high-performance all-electric sedan is expected to be unveiled in September, a concept version of an upcoming electric SUV could also make its debut.

Mercedes previously offered a fuel-cell variant of its B-Class, which was met with mixed feelings and has since limited the model to electricity only.

BMW and Mercedes aren't the only German automakers working on increasing its electric car lineup. Volkswagen has plans to have as many as 20 electric cars and plug-in hybrids on sale by 2020.

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