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Mercedes may be working on a new electric car dubbed 'Ecoluxe'

Automobile has a lengthy piece this month on how the four German mass-market luxury manufacturers each plan to go after Tesla with their own electric vehicles. It was written by Georg Kacher, the magazine's European bureau chief, and the English version came a month after he wrote the German-language original for Autobild. Tesla isn't exactly a threat to the Germans, but, according to the report, the Model S is planting the right kinds of seeds in niches that are important to the luxury players. The thinking is that - in addition to needed electric vehicles anyway for stricter US regulations - it's better to start designing the machinery now. The article posited Porsche's attack would rest on the coming Panamera platform, but a big hurdle would be battery placement. Unable to find one large space for a lithium-ion pack, engineers would instead put batteries everywhere they could, for a supposed tally of some "108 battery pouches" throughout the body. A few days after the Automobile piece, however, Porsche publicly said it had no intention of challenging the Model S, because the enthusiastic driving the brand is known for doesn't jive with useful range. In Kacher's retelling, Mercedes' plans are even more ambitious, supposedly taking aim at the Model S and the coming Model X. It would do this with an investment in excess of $2 billion in a program called "Ecoluxe" – Mercedes has no brand division akin to BMW's i and Audi's e-tron. The new brand would create a four-strong family of bespoke electric vehicles: a smaller platform with a wheelbase around 106 inches and a larger one with a wheelbase around 118 inches. In addition, the range would have "provisions for rear-wheel drive, all-wheel drive, and rear-wheel steering." The numbers are impressive: seating for seven in the larger vehicles, both longer than 16 feet, front and rear storage areas, ratings of up to 610 horsepower and production capacity of 80,000 units per year. When would we see such creatures? Perhaps as soon as 2019. We do know that if Tesla can knock the Model X over the outfield fence, automakers are going to have to do something. We don't know what the chances are that Ecoluxe is Mercedes' first move - but such a plan could help explain the weird Mercedes concept spied in October.

Tesla Wins Technology Of The Year Award

The winner of AOL Auto's second annual Technology Of The Year award ran away with the votes for the award, clearly surpassing all of the other contenders. We're giving it to Tesla's Supercharger Network, which today is made up of 54 charging stations in the U.S. that can provide about half an electric car's full charge in just 20 minutes, compared with the 8-hour charges from conventional outlets. The editorial staff agreed that the Tesla Supercharger is a game changer, and easily deserves to be called the Technology Of The Year. "Tesla is showing, again, that there are amazing technological breakthroughs to be made in the EV game, and are kind of making the rest of the industry look bad," said Sebastian Blanco, editor of Autoblog Green. AOL Autos' Multimedia Director Adam Morath agreed that the Supercharger is a game changer. "With the Supercharger, Tesla is tackling the tired arguments against the electrification of the automobile head on by addressing range, charge times, charger accessibility and clean energy production (the Supercharger is powered by solar energy, not coal) all in one stroke," he said. The panel reviewed more than 40 qualified submissions from readers, editorial staff and industry, the panel of judges named the following as finalists: Chevrolet MyLink Valet Mode; Infiniti Backup Collision Intervention; Tesla Supercharger Network; Volvo Pedestrian and Cyclist Detection with Full Auto Brake; Mopar In-Vehicle Wireless Charging for Portable Devices; and Mercedes-Benz Intelligent Drive. Superchargers are located across the U.S., making it possible for an electric car driver to take a coast-to-coast trip. They're strategically placed near amenities like roadside diners, cafes, and shopping centers so drivers can stop, eat, and come back to a charged electric car. Most of the staff did not get to test the Supercharger network firsthand, but have been following it closely. A former TRANSLOGIC reporter tested it, and said it works as promised. And Blanco has been following the Supercharger's development quite closely, and said he hasn't heard a single complaint from users in the U.S. or Europe. Jeremy Korzeniewski, Managing Editor of Autoblog, said the Supercharger levels the playing ground, making electric cars almost as convenient as gas-powered cars. "There's simply no way the average consumer is going to consider putting an electric vehicle in their garage if there's no way to refuel it on the go," he said.

Why Tesla's $35,000 Model E is a pipe dream

A car that costs 80 percent as much to produce as another can't be half the price. That's the simplistic version why Stanphyl Capital Management says Tesla Motors will not be able to sell its "mass market" sedan for the low, low (by luxury electric-vehicle standards) Elon Musk-backed price of $35,000. In fact, the California-based automaker will take about a $13,000 bath for each unit it sells of the new vehicle, now referred to as the Model E. Stanphyl Capital Management breaks down the fourth-quarter costs and revenue associated Tesla's Model S, of which it sold about 6,900 units during the last three months of the year. In a nutshell, Tesla generated a whopping $106,000 per vehicle sold, with about two-thirds of the company's gross profit coming from battery and optional upgrades. And while Tesla may be able to get the Model E battery costs down to about $8,100 compared to the $15,600 cost of the Model S battery (the smaller car will use a smaller battery that will provide about a 200-mile single-charge range), all of the other stuff brings the Model E's unit cost up to about $48,000. That compares to the $59,600 average cost of a Model S. Fremont, we have a problem. Reports came out in December saying that the Model E may be unveiled at one of next year's auto shows and sales could start as early as 2016. The argument against the possibility of a $35,000 Model E may sound reasonable on paper, but more than a few people have lost money betting against Elon Musk. You can read more at ValueWalk.