Mercedes Has the Horsepower for Tesla Battle

Auto shows, like the one in Frankfurt this week, are usually the time for executives to display their most alluring wares and point toward an evermore illustrious future.

Odd then that Daimler AG decided Monday was the right time to get all gloomy. To be clear, profit at the Mercedes-Benz brand is just fine and dandy for now. The parent is expected to report almost 10 billion euros ($12 billion) of net income this year, a level that only four other western European companies might exceed, according to Bloomberg data.