Tesla took the EV world by storm when they launched the Roadster in 2008. Before any car manufacturer could understand what struck them, Tesla went on to create a name for itself as the King of the Electric Vehicles segment. The Roadster was followed by the Model S, a luxury sedan which went on to become the world's best-selling electric car in 2015 and 2016, and further cemented Tesla's dominance. If to be seen, there was no threat to the Model S as the other 'good-selling' EV's were the Nissan Leaf and BMW i3 - both hatchbacks with subpar range. However, it looks like the Model S might finally face some fierce competition from another luxury automaker. Read on to find out who that is:

Surprise, Surprise - It's Mercedes!

Given the sheer dominance displayed by the Model S, it would take only a reputed, established manufacturer to take it on; and Mercedes seems to have accepted the challenge. Mercedes-Benz is currently in the development stages of the "EQ S". It’s slated to be a battery-electric, full-size, luxury sedan, with sizing and performance consistent with the Mercedes' S-Class. The S-Class is currently offered as a plug-in hybrid, but the U.S. markets have never embraced plug-ins. Perhaps, a fully electric vehicle could change the game for Mercedes.

Is it just hype, or will it prove to be an actual threat?

As for the pricing, the Mercedes S550e plug-in starts at $96,600, so expect the EQ S to hit the six-digit mark. This is significantly higher than the Model S which starts at $72,700. Daimler has plans to bring ten battery-electric vehicles to market by 2022. Mercedes' CEO, Dieter Zetsche, says the EQ line will consist of multiple plug-in hybrids with increased all-electric range. He also notes that all vehicles will be electrified, however, this includes adding 48-volt mild-hybrid tech to the current Internal Combustion Engine lineup.

Our Take

Mercedes is no newbie to the EV segment. In fact, it holds a majority stake in 'Smart' electric cars, which now solely manufactures electric compact cars for city commute. On the other hand, there have been more than 200,000 examples of the Model S sold across the world since its inception in 2012; with 119,000 of them being sold in the U.S. itself. These sales figures are fairly impressive, given the price-band it sells at; but the monopoly looks to end soon.

The S-Class is known to be the epitome of luxury in the Mercedes line-up and, if it can inculcate the same features in the EQ S, we are in for one heck of a competition. The EQ S is still in its developmental stages and is not going to arrive for at least another three years. By then, we can expect every luxury-manufacturer to have a car competing the Model S. Can Tesla capitalize on the head start? Or will it be stumped by upcoming competition? Whatever the result, the floodgates have opened up, and we are excited to see what the future holds!

References

Read our full review on the 2017 Tesla Model S.

Read our full review on the 2017 Mercedes-Benz Concept EQA.

Read more Tesla news.