Smart mobility becomes paramount for meeting net-zero targets. However, autonomous, self-driving and electric vehicles require more than ever before an efficient, resilient and trustworthy computational offloading backbone that expands throughout the edge-to-cloud continuum. Utilizing on-demand heterogeneous computational resources for smart mobility is challenging and often cost-ineffective. This paper introduces SMOTEC, a novel open-source testbed for adaptive smart mobility experimentation with edge computing. SMOTEC provides for the first time a modular end-to-end instrumentation for prototyping and optimizing placement of intelligence services on edge devices such as augmented reality and real-time traffic monitoring. SMOTEC supports a plug-and-play Docker container integration of the SUMO simulator for urban mobility, Raspberry Pi edge devices communicating via ZeroMQ and EPOS for an AI-based decentralized load balancing across edge-to-cloud. All components are orchestrated by the K3s lightweight Kubernetes. A proof-of-concept of self-optimized service placements for traffic monitoring from Munich demonstrates in practice the applicability and cost-effectiveness of SMOTEC.