Mercedes-Benz unveiled another Tesla-fighting electric luxury sedan — see the 677-horsepower AMG EQE

• Mercedes-Benz unveiled a new high-performance electric sedan, the AMG EQE.
• The Mercedes-AMG EQE promises up to 677 horsepower. It hits 60 mph in as little as 3.2 seconds.

Tesla has been a thorn in the side of established luxury brands like Lexus, BMW, Audi, and Mercedes-Benz for years. Now Mercedes is fighting back with several new electric models.

The latest in that effort is the Mercedes-AMG EQE, a midsize performance sedan unveiled on Tuesday. Over the last year, Mercedes has announced an onslaught of new battery-powered vehicles, starting with the EQS, its six-figure flagship, and followed up by the AMG EQS, a sportier version of that car developed by Mercedes's performance division.

Now the EQE, which slots below the EQS in size and price, is getting the AMG treatment as well.

The Mercedes-AMG EQE promises to be blisteringly quick, with Mercedes claiming a zero-to-60 time of 3.2 seconds for buyers who add on the Dynamic Plus package. The optional package also can deliver as much as 677 horsepower and 738 pound-feet of torque in short bursts. The "regular" AMG EQE offers a still very respectable 617 horsepower and can hit 60 mph in 3.4 seconds, Mercedes says.

The car also gets AMG-specific brakes and suspension catered toward sportier driving. The AMG EQE's battery management system is specifically tuned to optimize performance in Sport and Sport+ settings and range in the Comfort setting. Mercedes's Hyperscreen — an array of displays that span the entire width of the dashboard — is optional.

Mercedes pegs the AMG EQE's range somewhere between 275 and 321 miles, but its EPA rating will likely be on the lower end of that spectrum. The AMG EQE can accept 170-kilowatt charging, enabling it to add 112 miles of range in 15 minutes, according to Mercedes.

When it goes on sale in 2023, the Mercedes-AMG EQE may just help Mercedes claw back some market share from Tesla, whose Model S sedan has set the standard for electric luxury cars for a decade.

In 2021, Tesla was the No. 2 luxury brand in the US, beating out Mercedes and Lexus but falling just short of BMW, according to Automotive News. Still, Mercedes beat Tesla by more than two-to-one globally.