Mercedes is a very healthy company, has built a good brand and dominates in most parts of Europe. The more recent years decline in earnings can be attributed to pressure to switch to electric cars, as well as increase in competition and economic downturn of recent years. Things to consider are that Mercedes Benz is actually a leader in EVs and has well established technology even before Tesla did. They have made massive investments in the past which will reap benefits. As for the competition, it is pretty safe to assume that EU will increase tariffs on China so Mercedes can keep its sales high. Above all, company pays a good dividend, and it is currently undervalued even if we estimate slight decrease in earnings.

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