Mercedes will receive a new electric motor, signed by Tesla

The unit will be installed on a zero-emission model of the Germans.

Tesla and Mercedes have taken their deal to a new stage. During the conference where Tesla announced the company’s commercial results, CEO Elon Musk revealed that they have reached a new agreement with their partner.

Musk said that Tesla will develop in the years an electric engine for a Mercedes model with zero emissions. The car will also include a powerful battery pack capable of achieving a generous autonomy.

The automaker said in a letter to shareholders that it had a “letter of intent” from Daimler AG (DAI) for “a full powertrain in the Mercedes line.”

Yesterday, during a conference call, Musk said that details of the program may be announced “around the end of the year.”