| I don't mean to raise expectations, but I kind of doubt that Tesla won't be providing the batteries.
A. The Smart EV (ED is a stupid name) is only going to be around 1,000 cars, according to the ABG article. Many automakers are using large-format prismatic batteries, like the block shaped batteries in the iMiEV. There are very few uses for high amp hour prismatic batteries so naturally they cost alot of money because of the economies of scale. It would be very expensive to make a small batch of batteries just for 1,000 cars.
B. The Model S is reportedly using a flat shaped ESS. And look, the Smart also has a flat battery pack. (Although it's not like it could come in any other shape)
C. Elon isn't stupid. Why would he mention a relationship with Mercedes if he wasn't confident that somethign was going to happen? Tesla has said that they have had multiple auto-makers approach them, and out of all these unnamed auto-makers, Elon chose to name Mercedes.
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