Mercedes-Benz invested $10 billion to develop electric car Musk: Awesome!

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On Thursday, Daimler, the parent company of Mercedes-Benz, announced a $1 billion investment in its Alabama plant to begin mass production of a new electric SUV by 2020. Let’s explore this development with our car electronics editor.

Many industry experts believe that Mercedes-Benz's move could challenge Tesla, especially since Tesla plans to launch the Model Y, a compact electric SUV, in 2020. Both models are expected to compete fiercely in the market.

However, Elon Musk doesn’t seem worried. In fact, he welcomed Daimler’s entry into the electric vehicle space. On Sunday, he tweeted: “For a company like Daimler, $1 billion is just a drop in the bucket. I hope they invest more in the future—maybe add another zero to that number.”

Musk has always supported healthy competition in the EV industry, as it drives innovation and growth. In 2014, he even released Tesla’s patents to encourage others to join the electric vehicle revolution. He believes that a single company cannot carry the entire industry alone.

During a 2014 conference call, Musk said: “Sharing our patents won’t hurt Tesla. Instead, it will help the whole industry grow. I think it will attract the best minds in the world, and ultimately, it benefits everyone—including us.”

After reading Musk’s tweet, Daimler responded positively, stating that they plan to invest $10 billion in next-generation electric vehicles, with an additional $1 billion directed toward battery manufacturers. Musk simply replied, “Awesome!”

Indeed, Daimler is moving quickly. Their new initiatives aim to match Tesla’s core business, from home energy storage systems to electric trucks. In May, Mercedes partnered with Vivint Solar to offer smart solar systems to California residents—directly competing with Tesla’s solar roof. Additionally, Daimler’s truck division, Mitsubishi FUSO, is working with Tesla on electric trucks, which will be officially unveiled at the end of October.

By 2022, all Mercedes-Benz models are expected to be fully electric. This shift is likely to put pressure on Tesla. We’ll see how Musk responds to these developments.

This is the latest update from car electronics: Mercedes-Benz invests $10 billion in electric vehicles, and Musk says “awesome.” For more detailed and up-to-date information, keep following our coverage. Stay tuned for more insights from the world of automotive technology.

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