Tesla may want to watch their backs in the future as Mercedes-Benz is reportedly working on an all-electric car that will supposedly rival models like the S and the upcoming X.

According to Automotive News Europe, Mercedes-Benz development boss Thomas Weber stated that the all-electric car will be an "intelligent concept."

“We are working on an intelligent concept for a highly attractive electric vehicle with a range of 400 – 500 km,” said Weber.

Moreover, the all-electric powertrain can be used on other platforms, enabling different models to reap the benefits of having an emission-free propulsion.

Currently, the B-Class Electric Drive concept (pictured above) is Mercedes-Benz's all-electric car that has the highest all-electric range of 200 km. It is however classified as a 5-door hatchback as opposed to Tesla who sells a full-size luxury car.

Interestingly, the B-Class Electric Drive was made possible with help from then upstart Tesla Motors. Mercedes-Benz parent company Daimler partnered with the California-based automaker and took a 9.1% share back in May 2009. From then on, the B-Class' battery cells were provided by Tesla Motors. Elon Musk's company eventually grew and ties with the German automaker weakened.

There is no exact date on when it will be revealed but Weber added that the all-electric concept will debut soon.

Source: Automotive News Europe