Mercedes-Benz Has Huge Price Cuts as the Brand Preps to Halt American EV Production
Mercedes-Benz EV production heads to a close at the Tuscaloosa plant in Alabama as federal incentives dry up and sales continue to slump.
Mercedes-Benz has something with its EQ EV lineup. The existing EQS 450+ will manage around 390 miles on a single charge, not far off the range limitations of a 2025 Tesla Model S. But even with commendable range and a tech-laden interior, the Mercedes-Benz EVs are hurting.
The EQE, EQE SUV, EQS, and EQS SUV have suffered through paltry US sales, paling in comparison to other legacy and boutique EVs. As a result, the automaker is making some dramatic adjustments.
For starters, Mercedes-Benz stopped taking US orders for the EQE and EQS lineup. That includes the sedan and SUV iterations of each model. Both the EQE and EQS have an American home at the Mercedes-Benz Plant Tuscaloosa in Alabama. And come September 1, 2025, the Alabama plant will stop producing the EQE and EQS models, with no indication of resuming. This may be the end for all but the EQB SUV at the Tuscaloosa facility.
In the meantime, the workers at Mercedes-Benz Plant Tuscaloosa will finish those EVs slated for production. But with low demand, the brand is offering steep price cuts to move inventory. According to Autoevolution, the EQS SUV may run for just 14% of its previous ask, or $15,300 off of its price tag.
‘Weak demand,’ Loss of EV incentives to Blame for the Steep EQ Cuts
Mercedes-Benz says the loss of the US federal tax incentive for EVs is largely responsible for the shift. However, the incentive is still in place until September of this year, and Mercedes-Benz EV sales have been poor for quite some time.
Mercedes-Benz’s electric vehicle sales have dropped substantially year-over-year. Q1 and Q2 2025 marked a 50% drop in EV sales for the brand over the same period last year.
The Stuttgart-based automaker tried to pivot from the sad sales figures by presenting its EVs as electrified versions of more popular MB offerings. For instance, Mercedes-Benz debuted the CLA EV as an electrified variant of the CLA sedan. In the meantime, however, the brand’s EV offerings are dwindling for the American market.
Photos: Mercedes-Benz
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