The world is turning to EVs to stem the tide of climate change, but EV manufacturers face one big problem – adopting early means costs are high, and EVs are not really profitable. Just ask the late Sergio Marchionne.
But according to a report by the UK’s Financial Times (FT), Mercedes-Benz is claiming it will earn as much from electric cars as its piston-powered models by the end of this decade. It’s not just a bold claim as, in Germany’s ultra-competitive electric car space, Mercedes is now the first company to declare a hard target for electrical vehicle profits. Ola Källenius, head of Daimler AG told the FT that the automaker’s “task is to take the healthy business model of today and to prove to ourselves and to the financial markets that we can have healthy returns when we become a dominant electric company.”