Mercedes-Benz said its battery-powered Vision EQXX prototype, which it says is capable of being driven more than 1,000 km (621 miles) on a single charge, is the "most efficient and aerodynamic vehicle" it has built to date.
The Vision EQXX's battery and weight-saving technologies are designed to combat the challenge from Tesla.
"This isn't a show car but a protagonist for technology development," said Markus Schaefer, Daimler’s head of development. "Mercedes has worked hard in the last few years -- it’s our ambition to not only keep up but to be at the top of the game."
The prototype demonstrates efficiency improvements in the electric motor, inverter, battery design, packaging and thermal management.
The battery pack holds nearly 100 kilowatt-hours of energy and it has a new chemistry developed with the help of Formula 1 experts from the Mercedes-AMG High Performance Powertrains division in the UK.
The pack has 50 percent less volume and is 30 percent lighter than that of the EQS, the brand's current flagship electric vehicle. It is small enough to fit into compact vehicles.
It will have energy consumption of less than 10 kilowatt hours (kWh) per 100 km (efficiency of more than 6 miles per kWh), Mercedes said. Tesla's Model S 60 currently consumes 18.1 kWh over the same distance, data on its website shows.