By Al Root
It was a good run, but now it's over. Now, another car company wants to fill the gap.
In January, Tesla announced plans to stop production of its high-end Model S and X vehicles, choosing to turn that manufacturing capacity in Fremont, California, into a line dedicated to humanoid robot production. Car production stopped in May. Tesla is delivering its final "Signature" versions of the S and X this month.
It's the end of an era for electric vehicles. The Model S has been made for about 14 years. It was the first truly desirable EV. The " Plaid" version, capable of accelerating from zero to 60 miles per hour in about two seconds, was launched in 2021.
The loss of the S leaves a gap in the EV market that Mercedes-Benz Group wants to fill. On Tuesday evening, the German auto maker closed part of a Los Angeles highway to unveil its Mercedes AMG GT four-door coupe.
Three axial flux motors are capable of delivering 1,153 horsepower and are also capable of going from zero to 60 miles per hour in about two seconds. Charging times can be as little as 10 minutes. And software can make it feel as if the driver is controlling a V-8 engine. Mercedes starts selling the 2027 model year vehicle later in 2026.
In an axial flux motor, the electromagnetic field is parallel to the motor's axis of rotation, instead of perpendicular in a conventional electric motor. The design enables higher power and torque density.
It's an impressively engineered, high-end car. Pricing wasn't disclosed in the news release, but potential buyers can expect to pay six figures.
While Tesla is leaning into AI applications such as robo-taxis and robots, Mercedes is still investing in EV technology. The new AMG alone isn't enough to turn Americans into EV enthusiasts. The market for $100,000-plus cars is small. What's more, Americans lost the $7,500 federal EV purchase tax credit in September. EV sales fell 27% year over year in the first quarter.
Still, the new AMG is a very cool vehicle.
Tesla stock probably won't react much to the threat of new EV competition, though. Investors are thinking more about AI applications, such as robots.
Shares of Tesla were rising 1% at $408.29 in premarket trading Wednesday, while S&P 500 and Dow Jones Industrial Average futures were up 0.3% and 0.2%, respectively.
Coming into Wednesday trading, Tesla stock was down 10% year to date and up 18% over the past 12 months.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 20, 2026 05:10 ET (09:10 GMT)
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