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U.S. Head Of Mercedes-Benz Savages Tesla, Saying It Has 'Limited Potential'

Green Car Reports

"Don't bite the hand that feeds you" is a popular saying, but perhaps "don't criticize the company you're sharing technology with" should be another.

The latter would apply to Mercedes-Benz, whose U.S. boss Steve Cannon criticized Tesla Motors [NSDQ:TSLA] at the New York Auto Show.

Perhaps Cannon is forgetting that Mercedes has previously turned to Tesla for its electric vehicle expertise. Or that Tesla buys in certain Mercedes components for its Model S electric car.

Forbes quotes the Mercedes boss as saying future service of Tesla's vehicles could be "limited".

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He says that while Tesla is "great", other luxury automakers bringing plug-in vehicles to the market could be more attractive in the long run.

Mercedes' extensive dealer network, multiple peripheral powertrain options (such as gasoline and diesel) and its experience of the luxury market may be beneficial for customers wanting the "complete luxury experience".

Once players such as Mercedes and Porsche enter the luxury electric vehicle market, he questions whether Tesla will be able to maintain its current, growing success.