Deutsche bank analysts believe that Mercedes Benz’s upcoming all electric luxury car EQS is likely to enhance the brand’s visibility and become “Tesla’s (701.98, 24.96, 3.69%) Nemesis”.
For Mercedes Benz, as well as other German OEMs such as Volkswagen and BMW, EQS “could become a game changer,” analysts at Deutsche Bank, led by Tim rokossa, said in a report on Monday.
EQS will be officially launched on Thursday, and analysts at Deutsche Bank believe that “this car is likely to set a benchmark for pure electric vehicles (BEVS) in terms of technical features, design and quality.”
The car will be the first Mercedes Benz model to adopt its new special electric vehicle architecture, with a maximum range of 770 km. Analysts at Deutsche Bank said this would make it the longest running pure electric vehicle in the market, and only Tesla’s model s Plaid + could compete with it.
Tesla’s model s Plaid has a range of 628 km and plaid + has a maximum range of 837 km. But analysts at Deutsche Bank point out that these are only the company’s own estimates.
These analysts said that the interior quality of EQS and the adoption of the new “Super Screen” will make it “possible to become the first real” luxury Bev “in the market.”. Mercedes Benz’s hyperscreen, launched earlier this year, has turned almost the entire dashboard into a display interface using artificial intelligence software.
The team also said the new car would help transform the public’s view of Mercedes Benz from a traditional car manufacturer to a luxury electric car company, “which should be appreciated by investors.” These analysts believe that EQS “has the potential to change investors’ perception of traditional automakers’ capabilities in this new world of electric vehicles, thereby supporting the stock price earnings ratio.”
To a large extent, Deutsche Bank is optimistic about Daimler (22.64, 0.34, 1.50%), the parent company of Mercedes Benz, and sets its target share price at 80 euros, which means that the stock is likely to rise by more than 6% at the current level. Deutsche Bank is optimistic about Daimler’s electric vehicle strategy of focusing on Mercedes Benz brand to improve profit margin.
Analysts at Deutsche Bank also believe that EQS will be so influential that it will help rationalize the price earnings ratio of OEMs that are on the road to electrification. Any rise in Daimler’s share price could benefit companies such as Volkswagen and BMW, and even Renault (8.46, – 0.06, – 0.70%) in France.