Mercedes Unveils New Electric SUV Aimed at Tesla’s Model Y (1)

Mercedes-Benz Group AG is broadening its battery-powered lineup with a sport utility vehicle that will take on Tesla Inc.’s Model Y in another step toward the automaker’s goal to go all-electric by the end of the decade.

The EQE SUV, unveiled on the eve of the Paris car show, will edge out the cheaper Model Y with 590 kilometers (367 miles) of driving range and start at around €70,000 ($68,000) when sales begin late this year. It’s the fourth model to use Mercedes’ dedicated EV platform, which also underpins the flagship EQS sedan.

Mercedes CEO Ola Kallenius unveils the EQE SUV in Paris on Oct. 16.

Photographer: Nathan Laine/Bloomberg

“It’s the latest ...