The Mercedes EQ. Reuters/Benoit Tessier
Mercedes-Benz made a brilliant move when it unveiled its intention to corner the EV market by first offering an all-electric SUV.
The German automaker showed off its electric SUV concept, the EQ , at the Paris Motor Show on Thursday. The concept is expected to get a range of up to 310 miles, and Mercedes said the production model of the car is expected to hit the streets in 2019.
Mercedes said the electric SUV will fall in the same price range as its GLC Crossover, which currently starts at $39,150.
Mercedes' impending EQ roll-out should scare Tesla for one main reason: the EQ is an SUV.
The interior of the Mercedes EQ. Mercedes-Benz
Business Insider's Matt DeBord recently called attention to the fact that interest in small cars is waning . Edmunds, a consumer-oriented auto site, unveiled a report in August noting that it's a great time to buy smaller vehicles at used car shops because "there is so much more demand for used trucks and SUVs."
In fact, p assenger-car sales fell over 12% in August, while truck and SUV sales rose 2%, according to the firm Autodata. That stat fits into the larger trend of passenger-car sales declining over time.
Now keep in mind that EVs as a whole have yet to have their time to shine. Electric cars make up roughly 1% of global auto sales . It's likely a big reason for that is the limited range potential for electric cars.
So if you're going to try and corner the electric car market, it makes more sense to invest in a solid, all-electric SUV because at the very least you're giving consumers some semblance of what they want. Considering electric cars have yet to garner real traction, pushing electric sedans at a time where smaller car sales are already falling is a tough hill to climb.