Tesla Model 3 vs Mercedes CLA: which EV is the elite executive car?

The company-car segment has long been a pivotal part of the new-car market, but these days, business drivers have more premium tastes than in the past.

Mercedes’ A-Class hatchback and its swoopy four-door CLA relative have been very popular. But with neither offering a fully electric variant, and with EVs incentivised on current Benefit-in-Kind (BiK) tax ratings – the brand has missed out on a chunk of the market.

Now the Mk2 CLA is here, and while ICE options will follow, it is launching with an EV powertrain. Its on-paper specs look promising beyond the BiK numbers, too, including the prospect of a WLTP range as high as 484 miles, plus a changing speed of 320kW.

With numbers like that, there’s only one rival. The Tesla Model 3 has always topped its class on pure figures; performance, efficiency and charging speeds have always been its thing. But in more recent times, the firm 
has focused on the things that are harder to measure, such as comfort and refinement.

So with Tesla moving towards the subjective and Mercedes focusing on the measurables, which brand has produced the best car – be it for company-car drivers or anyone else?

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Mercedes CLA

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Mercedes made a stuttering start when it came to its electric vehicles. The EQC showed promise in some areas, but things moved astray with the EQE and EQS – plus their SUV equivalents – with underwhelming driving dynamics, overbearingly larger touchscreen tech and a general feeling that the level of finish fell below what you’d expect from a Mercedes. And that’s all the more strange when petrol cars such as the E-Class and S-Class still feel top-notch in these areas.

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The Mercedes CLA has emphatically put every one of these things right. Its chassis feels superbly engineered in a way that previous EQ models didn’t, and efficiency – courtesy of the brand’s latest powertrain and a slippery body with a drag coefficient of 0.21 – has taken another leap forward, to the point that there are few cars money can buy right now that would be more effective for long-distance driving.

Tester’s notes

For the latest CLA, the designers were seemingly very determined to leave nobody in any doubt that this is a Mercedes.

In case the huge three-pointed star logo on the front grille wasn’t enough of a giveaway, the rest of the grille panel is covered in dozens more little stars, and even the LED lighting signature mirrors the badge, too. Inside, the passenger side of that huge dash panel is covered with even more of them.

For a car which drives with so much sophistication and class, it all feels a bit try-hard and chintzy.

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Tesla Model 3

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It’s been with us for some time now, but the Tesla Model 3 remains one of the best electric cars around. Powertrain, efficiency and charging are all right towards the top of the class, while the all-electric saloon’s facelift improved on previous weak points – most noticeably build quality and refinement – while boosting the already excellent range up to around 400 miles in some versions.

Add in a very competitive price, and this was why we decided to keep the Model 3 in place for the second year in a row as our top pick  in the Mid-size Company Car of the Year category of the 2025 Auto Express New Car Awards.

Tester's notes

Tesla owners can still consider themselves spoiled rotten by their access to the brilliant Supercharger network. It’s by far the easiest public charger system to use, speeds are great and the car can precondition its battery in order to optimise charge speeds on arrival.

Prices vary according to demand on any given site, but they generally cost far less than the other popular charging networks such as Gridserve and Ionity, too. And best of all, you don’t need to faff about with a credit card; the energy you use is paid off via direct debit each month.

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Head-to-head

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On the road

The Mercedes feels superbly engineered, with refinement, handling and powertrain set-ups perfectly in tune. It’s the ride quality that is the CLA’s standout feature, though; it feels more comfortable than many of the brand’s larger models. The Tesla is a much better car to drive since mid-life updates; refinement is a match for the CLA’s, but its ride is less accomplished and its steering and handling feel rather unnatural.

Tech highlights

Two technical features help the CLA stand out against its rivals. First is the inclusion of a two-speed gearbox that uses its second gear on a cruise to improve high-speed efficiency. The second comes from its 800-volt charging architecture that allows top-ups of up to 320kW, adding 200 miles of range in 10 minutes. The Model 3 isn’t exactly tardy when it comes to charging, either, with a maximum rate of 250kW.

Price and running

We’ve driven the Model 3 countless times over the years, and one of the reoccurring trends is that it always leads the way for efficiency. However, it’s met its match with the CLA, which achieved a superb 4.1mi/kWh during the cool conditions of our test, pipping the Tesla (admittedly with a dual-motor set-up) by 0.3mi/kWh. The CLA’s larger battery means it’ll cover 351 miles on a charge to the Tesla’s 285 miles.

Practicality

Both cars are compromised by their saloon bodystyles when it comes to carrying bulky items. While the CLA’s boot is slightly smaller than the Model 3’s, its opening is much larger, which makes it a little more versatile. Both have roomy front boots, though. The Tesla is a little more spacious for rear-seat passengers, but limited foot room under the front seats makes it less accommodating than it could have been.

Safety

The CLA is yet to be tested by Euro NCAP, but Mercedes has a superb safety record, so we’d expect that to continue here. Tesla also gives a consistently strong showing in NCAP’s tests, and a 2025 reassessment for the Model 3 (it scored five stars in 2019) maintained that rating to rank it among the best cars of the year for safety across all four categories, particularly in the Driver Assistance section.

Ownership

Both brands performed strongly in our 2025 Driver Power owner survey, with Tesla comfortably in the top half of the table in 11th, and Mercedes scooping second. While Tesla charging is a breeze at home or on the go, the CLA cannot schedule charges yet to make the most of cheap overnight electricity, nor is it compatible with the many 400-volt public chargers. Fixes for both are on the way.

Verdict

Winner: Mercedes CLA

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After a very underwhelming early period for the company’s EV line-up, the CLA feels like a huge turning point for Mercedes. It seems to have learned from many of the shortcomings of its earlier models and put that knowledge to brilliant use this time around.

This feels like one of the best-engineered Mercedes models in years; ride, refinement and powertrains are all genuinely superb, and this car more than any other will finally end the misconception that EVs aren’t capable long-distance cars; that 350-mile real-world range, in less than ideal conditions, is impossible to argue with. Well done, Mercedes.

Runner-up: Tesla Model 3

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It’s taken the best part of six years and a mid-life update, but finally the Model 3 has come up against a car that has taught it more lessons than it’s able to dish out itself. A second-place finish here is far from a poor showing for the Tesla saloon though, and there’s still a huge amount to admire here.

While efficiency is slightly behind its rival in this contest, the Model 3 offers stronger performance, so that’s easy to forgive. High-speed refinement is on par with the Mercedes, too. However, when it comes to ride, handling, steering, build quality and overall range, the Tesla has to give second best.

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