Mercedes-Benz Challenges Tesla with a $12 Billion Investment Plan That Could Upset the Industry’s Dominant Position

Produced by Big Data Digest Translated by Cha Xi and Jiang Bao-Shang In the premium electric vehicle (EV) segment, Tesla’s industry leadership is unquestionably at the level of a ‘martial arts sect leader.’ According to Electrek, Tesla’s financial report shows that its second-quarter EV deliveries exceeded 40,000 units—firmly securing first place. Wall Street further projects Tesla’s Q2 revenue at $3.791 billion. Now, things are changing: competitors are preparing to launch fierce competition against Tesla in this space. Mercedes-Benz—the world’s largest luxury car manufacturer—will introduce its first electric vehicle to compete directly with Tesla. Dieter Zetsche, CEO of Daimler AG, told reporters at the Stockholm launch event for the Mercedes EQC crossover that the vehicle—a key part of Mercedes’ broader EQ electric vehicle product line—will enter production in the first half of next year. He added on Tuesday that the company had originally planned to invest €10 billion (approximately $12 billion) in EV development, but actual costs have already surpassed $12 billion—though the precise figure remains undisclosed. Mercedes-Benz EQC Crossover “There is no alternative but to bet on electric vehicles; from now on, we must go all-in,” said Zetsche. Tesla’s third-generation Model 3 has faced significant challenges in both manufacturing and profitability. The arrival of the EQC will join forces with Porsche’s Taycan, Audi’s e-tron, and Jaguar’s I-PACE to intensify pressure on Tesla. Compared with its rivals, the EQC offers better value and will “deliver the best package pricing”—though Mercedes has disclosed no specific pricing details. After Tesla won over affluent buyers with the Model S, other luxury brands—including Mercedes—have aggressively launched EVs to challenge Tesla’s dominance. Daimler plans to launch ten fully electric models by 2022, including phasing out internal combustion engines across its Smart brand. To underscore this strategic shift, Mercedes will invest €1 billion globally to build a battery production network comprising eight factories. Competition Intensifies BMW, Mercedes, Audi, and Jaguar have all unveiled EV models targeting Tesla. As they encroach upon Tesla’s territory, traditional luxury automakers are striving to seize the spotlight from innovative EV manufacturers.

$22.2 Billion: Coller Capital ‘Sells Itself’ to EQT

Founded 36 years ago, Coller Capital has built its core business around the ‘Coller International Partners (CIP)’ fund series. Its nine funds span the period from 2000 to 2025, consistently delivering a median internal rate of return (IRR) above 15%—placing it solidly in the top quartile among secondary fund managers. Beyond traditional limited partner (LP) stake acquisitions, Coller Capital also offers specialized solutions—including structured sales (e.g., strip sales, stapled secondaries), GP-led continuation funds, and private equity NAV financing—each recognized as a flagship service. Notably, on December 31, 2025, Coller Capital successfully closed its latest fund—CIP IX—at $14.2 billion, setting a new record in its history and pushing its total assets under management (AUM) beyond $50 billion. Reportedly, CIP IX targeted $13 billion and ultimately oversubscribed by $1.2 billion. Its LP base comprises North American public pensions (38%), sovereign wealth funds (24%), European insurers (18%), Asia-Pacific sovereign funds and pensions (12%), and private banks/family offices (8%). As of January 2026, CIP IX has deployed $4.1 billion across 11 transactions, with an average discount of 86% relative to net asset value (NAV). With Coller Capital acquired, EQT Immediately Joins the Top Tier of Secondary Market Players Founded in 1994 and headquartered in Stockholm, Sweden, EQT is renowned for its private equity buyout funds. In September 2019, EQT listed on Nasdaq Stockholm’s main market. As of Q3 2025, EQT managed approximately €267 billion (roughly RMB 2.2 trillion), with businesses spanning Private Capital (buyout and growth funds), Real Assets (infrastructure and real estate), and Credit & Secondaries (a newly added segment). EQT is currently raising a new fund—Asia VII—which has already begun pre-marketing with a target size of $8 billion, focusing on China’s advanced manufacturing, Southeast Asian consumer sectors, and India’s financial services. “Entering the secondary market via Coller represents a natural and necessary step in EQT’s strategic evolution,” stated EQT’s CEO. “We aim to double Coller’s AUM within the next four years” and plan to launch its first co-branded ‘Coller EQT’ continuation fund in the first half of 2027, targeting $6–8 billion. According to the ‘2026 Global Secondary Market Report,’ jointly published by Preqin and Campbell Lutyens, global secondary market transaction volume reached $226 billion in 2025—an increase of 41% year-on-year—and is projected to reach $500 billion by 2030, growing at a compound annual growth rate (CAGR) of 17%. The top 20 firms accounted for 62% of total market share in 2025, reflecting ongoing consolidation. EQT’s acquisition of Coller Capital echoes two landmark deals: CVC’s $1.3 billion acquisition of Glendower Capital in 2021 and Ares’ $1.2 billion acquisition of Landmark Partners—signaling a broad industry consensus that large, multi-strategy platforms must complete their secondary market capabilities to remain competitive.

EQT's Zelestra Unveils $12 Billion Plan to Chase US AI Demand

17 hours ago

Zelestra, an EQT-owned renewable energy firm, plans a €10.5 billion investment over four years to meet surging US AI power demand. The strategy aims to expand contracted capacity to 18 gigawatts, targeting data centers as key clients.

bloomberg

2026-11-04

EQT's Zelestra Unveils $12 Billion Plan to Chase US AI Demand

EQT's Zelestra Unveils $12 Billion Plan to Chase US AI Demand

FAQ