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Did Elon Musk Get Mercedes’ Parent Company to Invest $10 Billion in Electric Cars?

Musk challenged Daimler over a $1 billion Alabama expansion in 2017. The company cited broader EV and battery plans, but the exchange doesn’t show he caused them.
Entry606 Date Time3 min MechanicCarCody Team
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No. On September 24, 2017, Elon Musk publicly argued that Daimler’s reported $1 billion Alabama investment was too small, writing, “Off by a zero.” Daimler replied the next day that its broader plans already included more than $10 billion for next-generation electric vehicles and more than $1 billion for battery production. The exchange documents a public challenge and response—not evidence that Musk caused Daimler to adopt a new investment commitment.

What Musk said—and how Daimler replied

The exchange followed a September 21, 2017 announcement by Mercedes-Benz U.S. International (MBUSI) of a planned $1 billion expansion in Alabama. On September 24, Musk responded to a public post about that figure:

“That’s not a lot of money for a giant like Daimler/Mercedes. Wish they’d do more. Off by a zero.”

Daimler answered on September 25:

“You’re absolutely right @elonmusk. Here’s the missing zero: Investing >$10bn in nxt gen EVs & >$1bn in battery prod.”

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Musk replied, “Good.” The exchange is reproduced in Webrazzi’s September 25, 2017 coverage.

What the $1 billion Alabama announcement covered

The $1 billion figure referred to a specific planned expansion of MBUSI’s manufacturing footprint around Tuscaloosa, not Daimler’s total electric-vehicle investment. Most of the announced investment was slated for the electric initiative: EQ-branded electric SUV production at the Tuscaloosa facility and a nearby battery plant. The September 21, 2017 MBUSI announcement described the Alabama project and quoted Markus Schäfer, then a member of the Mercedes-Benz Cars divisional board responsible for production and supply chain, saying the investment would grow the company’s Alabama footprint and signal its commitment to electric-vehicle development and production.

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How the Alabama project differs from Daimler’s wider figures

Daimler’s reply cited broader company plans, separate from the Alabama project. These were corporate statements reported in 2017, not independently verified totals of money already spent.

2017 figure What it referred to Scope
$1 billion planned investment Expansion of MBUSI’s Alabama manufacturing footprint, including EQ SUV production and a nearby battery plant Specific regional manufacturing project
More than $10 billion Daimler’s stated investment in next-generation electric vehicles Broader company plan
More than $1 billion Daimler’s stated investment in battery production Broader battery-production plan

The two “more than” figures come from Daimler’s response as reproduced by TechCrunch’s September 26, 2017 report. They should not be added to the Alabama figure as though all three were separate, realized expenditures: the Alabama initiative included battery production, and the sources do not establish how the reported plans overlapped financially.

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Did Musk cause Daimler to commit the broader investment?

The timeline does not support that conclusion. MBUSI announced the Alabama expansion before Musk posted, and Daimler’s reply presented the broader EV and battery plans as existing commitments, not a new response to him. TechCrunch reported that Musk’s comment did not prompt a change in Daimler’s plans. It is fair to describe his post as a public challenge or pressure; it is not established that it caused Daimler to make a new $10 billion commitment.

What Daimler’s other 2017 EV target meant

Daimler’s 2017 annual report set a historical portfolio target for 2022: more than 50 electrified versions, including more than 10 fully electric vehicles. This was a plan stated in the 2017 report, not evidence by itself that the target was later achieved or a description of the company’s present-day lineup. See the Daimler 2017 Annual Report.

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Which company name applies?

The exchange took place when the parent company was called Daimler AG. It is now Mercedes-Benz Group AG; Mercedes-Benz AG is a company within the Group focused on passenger cars and premium vans. The current naming context is set out in Mercedes-Benz Group’s investor outlook.

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