This paper proposes a novel multilevel inverter for automotive applications. The topology consists of a modular DCDC converter and a tap selector, where the DC-DC converter provides several DC-output levels and the tap selector produces an AC signal by choosing different DC-output signals from the DC-DC converter. To produce the DC-levels, the DC-DC converter consists of a modular structure where the modules are connected in series. The novelty is that the modules are connected both, magnetically in the AC-domain and electrically in the DCdomain. Due to the usage of low power switches in the modules, the proposed structure provides high efficiency. Furthermore, the DC-DC converter is capable of self-balancing its modules and thus does not require large capacitors which yields a high power density. A prototype of the proposed converter is built and simulation, as well as experimental results, are used to verify the findings.