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Mercedes takes biggest swing yet at Elon Musk’s Tesla as it unveils new CLA with 492-mile range

Christiaan Hetzner
By
Christiaan Hetzner
Christiaan Hetzner
Senior Reporter
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Christiaan Hetzner
By
Christiaan Hetzner
Christiaan Hetzner
Senior Reporter
Down Arrow Button Icon
March 18, 2025, 5:45 AM ET
Ola Källenius
CEO Ola Källenius is under pressure to deliver a smash hit with the third generation of Mercedes’ baby Benz, the CLA four-door sedan. Marijan Murat—picture alliance via Getty Images
  • The new Mercedes CLA compact sedan can drive up to 792 kilometers, recharge nearly half its battery in 10 minutes, and comes with all the creature comforts its well-heeled clientele have come to expect. It even has a frunk.

Mercedes-Benz took its boldest swing yet at Elon Musk’s Tesla in a bid to once more set the benchmark for luxury and innovation in the automotive industry.

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On Thursday, the German carmaker that invented the modern automobile reinvented its compact sedan, keeping the CLA nameplate and nothing else from the previous two generations of the baby Benz.

Instead, engineers started from a clean sheet of paper to develop the most intelligent and energy-efficient car that has ever come out of its Stuttgart headquarters.

Available later this year in all major markets, including the U.S., the fully electric version is rated in Europe to drive up to 792 kilometers—making it the longest-range EV on sale in the continent. While its range translates to 492 miles, the more conservative U.S. EPA has not yet rated it.

Moreover, it can recharge nearly half of its battery in a matter of minutes—all for a car that is expected to cost somewhere in the vicinity of a Tesla Model 3. 

“This CLA marks the start of the greatest series of car launches ever for Mercedes-Benz,” CEO Ola Källenius told guests at the car’s premiere in Rome. He aims to bring “dozens” of new and refreshed models by 2027.

The new CLA compact sedan.
Courtesy of Mercedes-Benz

The past five years have been challenging for Mercedes, which saw its traditional role as the leader among premium brands torn away by Tesla.

However, Musk’s polarizing behavior has created an opening amid protests and boycotts to peel away customers looking to make the switch.

Mercedes appears to have learned the lessons from its first dedicated effort to build a high-tech EV flagship.

Competing in a niche segment of largely chauffeur-driven executive limousines, the EQS failed to connect with a conservative customer base that still prizes Merc’s combustion engine S-Class sibling as the pinnacle of luxury. 

This time, however, the CLA’s more aggressive styling and emphasis on software and digital intelligence fits hand in glove with the compact sedan’s much younger target audience.

That gives the company cause for hope since Mercedes has poured a lot of effort into the CLA and cannot afford another mistake. 

Blueprint for the technology in every new Mercedes to come

For one, the CLA uses a new, in-house-designed operating system, MB.OS, which will gradually be rolled out to all future Mercedes models.

It adopts Tesla’s approach of continually improving all aspects of the car over time through software updates. Most carmakers still struggle with that since various subsystems sourced from suppliers struggle to speak to one another in the same language. 

The interior of the new Mercedes-Benz CLA.
Courtesy of Mercedes-Benz

This MMA (Mercedes Modular Architecture) includes a new electrical system that is twice as capable as the standard EV.

That means in a pinch, owners can add 325 additional kilometers of range in just 10 minutes at a highway fast-charging station before continuing on their way. 

For those worried about the durability and resilience of the battery, Mercedes says the car comes with a guarantee its battery will retain at least 80% of its original charge after eight years or 160,000 km.

Finally, alongside niceties like a frunk (front storage area)—a first in a Mercedes EV—and a panoramic glass roof that comes standard, the vehicle features a premium infotainment system powered by a computer chip that can calculate 254 trillion operations per second. It’s so potent, it needs liquid cooling like a high-end PC gaming rig.

“The new CLA is the front-runner and blueprint for the technology we’re going to see in every new Mercedes from now on,” Källenius continued. 

With so much riding on the line, the chairman of the board himself took the unusual step of personally attending the CLA premiere in Rome. Typically, nonexecutive directors remain in the background in Germany, restricting their roles to oversight and governance.

“I’m convinced that Mercedes-Benz is ushering in a new era of digitalization and e-mobility with the all-new CLA,” raved Mercedes chair Martin Brudermüller in a post on LinkedIn.

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About the Author
Christiaan Hetzner
By Christiaan HetznerSenior Reporter
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Christiaan Hetzner is a former writer for Fortune, where he covered Europe’s changing business landscape.

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