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Should Tesla Be Worried about Porsche's Electric Mission E Car?

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Earlier this month, Volkswagen VLKAY -owned sports car company Porsche announced productions costs and dates of its all-electric vehicle Mission E. Porsche plans to spend 1 billion Euros (approx. $760 million) to create the Mission E, which is expected to go from 0-60mph in 3.5 seconds, travel 300 miles on a single charge, and recharge 80% of its battery within 15 minutes. It's slated for release by 2020.

The new model would be Porsche's first all-electric car, marking a major milestone in the company's history. Previously, it introduced plug-in electric hybrids like the Panamera S E-Hybrid.

No price was given, but one can assume it will be on the higher end; the Porsche name has always been associated with luxury, with vehicle prices reaching $200,000 and beyond.

Dr. Wolfgang Porsche, Chairman of the Supervisory Board of Porsche AG: "With Mission E, we are making a clear statement about the future of the brand. Even in a greatly changing motoring world, Porsche will maintain its front-row position with this fascinating sports car."

Porsche's sustainable growth efforts will also create around 1,000 jobs at the company's factory in Stuttgartt-Zuffenhausen, Germany. Over the next few years, a new paint shop assembly plant will be built, while the existing engine factory will be expanded for the production of electric motors and the current body shop will be enlarged.

But the real question for Porsche is if the Mission E can successfully take on Tesla Motors TSLA , the current leader in electric car development.

Without a doubt, Tesla dominates the electric car market space. They have built a brand around sustainability, opulence, and clean design, and its Model S, a sedan, and Model X, a crossover SUV, have been wildly popular since their releases. Tesla is even planning to launch a $35,000 Model 3 in 2016; its previous models have price tags of well over $100,000.

Despite other companies' efforts in electric car production-Volvo, Volkswagen-owned Audi, Ford Motors, and General Motors-none have presented the right aesthetic to rightfully take on Tesla. Porsche, however, may just be the right kind of rival.

With a "highly emotional" design, the Mission E plans to combine incredible driving performance with trendsetting day-to-day sensibility. It's lithium-ion battery-the same kind of battery Tesla is preparing to produce en-masse at its Gigafactory -will be mounted in the car's underbody between the front and rear axles.

Check out these photos of the Mission E:

Images: Porsche

The Mission E has the same sort of appeal that Tesla has used for years now to win over buyers: it's sleek, its fast, and it doesn't necessarily look like an all-electric car. Its release date, however, is still at least five years away; Tesla can start really worrying once the end of the decade draws nearer.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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