• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less

1

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

2

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
TechMercedes Benz
Europe

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
Down Arrow Button Icon
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
Add Fortune on Google for similar content.
  • 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.

Recommended Video

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.

About the Author
Christiaan Hetzner
By Christiaan HetznerSenior Reporter
Instagram iconLinkedIn iconTwitter icon

Christiaan Hetzner is a former writer for Fortune, where he covered Europe’s changing business landscape.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Man in a suit and tie
InvestingAmazon
Bill Ackman, David Tepper, and other billionaire fund managers are quietly piling into Amazon
By Amanda GerutJune 25, 2026
4 hours ago
A college graduate in regalia rests his chin in his hand.
Future of WorkGen Z
Gen Z graduates are blaming AI for their unemployment woes when they should be looking somewhere else
By Sasha RogelbergJune 25, 2026
4 hours ago
Getting past the pilot: Why so many AI test projects have trouble scaling
SuccessBrainstorm Tech
Getting past the pilot: Why so many AI test projects have trouble scaling
By Alexei OreskovicJune 24, 2026
12 hours ago
‘Godmother of AI’ and tech entrepreneurs draw investors by pivoting from chatbots to ‘world models’ saying AI has to read the room, not just books
AIRobots
‘Godmother of AI’ and tech entrepreneurs draw investors by pivoting from chatbots to ‘world models’ saying AI has to read the room, not just books
By The Associated PressJune 24, 2026
13 hours ago
‘We are in agony’: Today Show host Savannah Guthrie begs public for help as reports surface her missing 84-year-old mom might be dead
North AmericaMedia
‘We are in agony’: Today Show host Savannah Guthrie begs public for help as reports surface her missing 84-year-old mom might be dead
By The Associated PressJune 24, 2026
13 hours ago
Asia’s defense boom is rewiring the global arms supply chain
Commentaryarms, weapons, and defense
Asia’s defense boom is rewiring the global arms supply chain
By Chris OberoiJune 24, 2026
14 hours ago

Most Popular

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
1 day ago
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
1 day ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
20 hours ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
2 days ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
21 hours ago
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
Economy
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
By Tristan BoveJune 24, 2026
16 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.