Electric Mercedes opens German assault on Tesla

Tech Buzz

Wow Factor

Not to be outdone, BMW has hired a Lufthansa cargo jet to fly its electric Vision iNext - still just a concept car - from Munich to Beijing via New York and, of course, San Francisco. Events are planned in all four cities over five days.

In another Tesla-inspired move, the three German carmakers are developing their own network of fast-chargers along major highways in a partnership with Ford.

While some experts doubt the Germans can ever match the wow factor around Tesla and its founding boss Elon Musk, many also wonder whether they need to.

"German manufacturers have highly desirable, fun-to-drive premium cars in their DNA," said Nicolai Mueller, a McKinsey partner based in Cologne. "That's a very good starting point."

Tesla used its powerful tech aura to persuade early adopters to pay a premium for an all-electric car from a relative unknown, with no quality track-record or physical dealerships for servicing and support.

But the German carmakers have a century of manufacturing behind them, with sterling brands, well developed global sales networks and an existing customer base in the millions.

BMW's i3 mini and an earlier Audi e-Tron failed to shift large volumes, but the electric-car market has matured since. LMC sees China driving global sales growth above 50 percent annually as the German offensive gets underway in 2019-20.

By then the Model S flagship will be eight years old. Musk, by tweeting then withdrawing plans to take Tesla private, has sharpened doubts about the company's ability to keep expanding and updating its lineup.

"Tesla is potentially facing a product shortfall starting in 2020," Jefferies analyst Philippe Houchois warned investors in a note last week.

Tyler Martin, a Tesla owner in Tucson, Arizona, said he had yet to decide whether to buy a Model 3 next - after his current Model S suffered from "build quality" issues requiring several trips to the repair shop each year.

One big question is whether competitors can offer a viable alternative to Tesla's proprietary fast-charging network, the 28-year-old software entrepreneur said.

If they can, Martin added, "I would definitely consider another brand."