EQS EQS (V297) sedan

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Old Feb 24, 2023 | 08:51 PM
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The competition

I think you’ll find this article from CNBC about the Lucid demand very interesting.

Luxury EV maker Lucid appears to have a demand problem.

Luxury EV maker Lucid appears to have a demand problem


PUBLISHED FRI, FEB 24 202312:36 PM ESTUPDATED 5 HOURS AGO

John Rosevear@JOHN__ROSEVEAR
  • Luxury electric vehicle maker Lucid said during its fourth-quarter earnings report that it had “over 28,000” reservations for its Air sedan as of Feb. 21, down from “over 34,000″ reservations in November.
  • It plans to build just 10,000 to 14,000 vehicles in 2023, despite factory capacity to build more.
  • Lucid stock has sold off since its earning report, as demand concerns raised questions for investors.
In this article

People test drive Dream Edition P and Dream Edition R electric vehicles at the Lucid Motors plant in Casa Grande, Arizona, September 28, 2021.
Caitlin O’Hara | ReutersLuxury electric vehicle maker Lucidappears to have a demand problem.

The company said during its fourth-quarter earnings report Wednesday that it had “over 28,000” reservations for its Air sedan as of Feb. 21. That was a surprise, given that the company had claimed “over 34,000″ reservations in November and delivered fewer than 2,000 vehicles in the fourth quarter.

Even more surprising: Lucid said it plans to build just 10,000 to 14,000 vehicles in 2023, far fewer than the roughly 27,000 Wall Street analysts had expected — and than the roughly 34,000 vehicles per year that Lucid’s factory is set up to build.

Shares of the company have fallen about 15% since the Wednesday report.

Lucid faced a rough road getting the Airinto production. The company spent much of the first half of 2022 scrambling to secure key components and untangling logistics snags. Now, with production running more or less smoothly, it seems to be facing a new problem: Not enough of its reservations are converting to orders.

CEO Peter Rawlinson acknowledged as much during the earnings call when he reminded listeners that reservations aren’t binding.

“We’ve solved production. That is not the gating issue here now,” Rawlinson said. “My focus is on sales. And here’s the thing: We’ve got what I believe to be the very best product in the world. ... Too few people are aware of not just the car, but even the company.”

Rawlinson went on to say he believes that to be an “entirely solvable problem” and plans to focus on “amplifying customer awareness” in 2023.

More marketing might help. But clearly, demand for Lucid’s vehicles isn’t materializing as quickly as the company expected, which raises some tough questions for investors.

First, how big is Lucid’s potential market? Any estimate of how much Lucid could grow has to start with an estimate of the “total addressable market,” and it appears the company’s estimates on that front may have been too rosy, given that its factory is set up to produce many more vehicles than it’s building now.

Running an auto factory well below capacity isn’t exactly a route to profitability, as Chief Financial Officer Sherry House conceded during Lucid’s earnings call.

“As we produce vehicles at low volumes on production lines designed for higher volumes, we have and we will continue to experience negative gross profit related to labor and overhead costs,” House said.

That leads to a second, related question: How long will Lucid have to run its factory at a loss? Or, put another way, how long will it take Lucid to get to profitability — and how much money will it have to raise between now and then?

Bank of America analyst John Murphy has long been bullish on Lucid, but in a note to investors following Lucid’s earnings report, he cut the bank’s rating on the stock to hold, from buy. Murphy wrote that he now thinks Lucid won’t break even before 2027, and that the company will need to raise more capital sooner than he had previously expected.

The good news is that Lucid has a deep-pocketed investor. Saudi Arabia’s Public Investment Fund owns about 62% of Lucid, and has shown — most recently in December, when it invested an additional $915 million — that it’s still willing to fund the company. As long as it has the Saudi fund’s backing, Lucid should be able to keep going.

But the road to profitability — and to a big payday for Lucid’s investors — is now looking longer.

In this article

Last edited by AppleFan1; Feb 24, 2023 at 08:53 PM.
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Old Feb 24, 2023 | 09:40 PM
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Rawlinson has been back pedaling for years now with smoke and mirror excuses. I was a early deposit holder on a Lucid Grand Touring and went through 2 years of promises and no results. It was bad enough never hearing back from your sales advisor and build time being pushed back month after month with no replies.

Then once production began hearing story after story of poor fitting parts, AC that was barely able to keep up with Summer heat, Lucids regularly bricking while driving, software that did not work and mileage well below published rates. Unfortunately many of these same problems still exist. Go to the Lucid owners forum for current problems. I finally gave up and forfeited my deposit right as production on my unit finally started as I had already bought my EQS. Lucid then contacted me months later asking if I still wanted a Grand Touring at the original price. No thank you…

PS-When picking up my 580 SUV and talking with my salesman he mentioned that his sales manager had put the word out they would not take any Lucids in on trade.

Last edited by Utopia Texas; Feb 24, 2023 at 09:59 PM.
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Old Feb 25, 2023 | 08:33 AM
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lucid is the worst their customer service just blows you off and doesn’t reply when you have issues with the car …never get a lucid. I had better customer service on my electric golf cart than on a car that costs more than a house

Mercedes dealer told me they had a $30,000 loss on a lucid they took on trade in right when I got my car


Originally Posted by AppleFan1
I think you’ll find this article from CNBC about the Lucid demand very interesting.

Luxury EV maker Lucid appears to have a demand problem.

Luxury EV maker Lucid appears to have a demand problem


PUBLISHED FRI, FEB 24 202312:36 PM ESTUPDATED 5 HOURS AGO

John Rosevear@JOHN__ROSEVEAR
  • Luxury electric vehicle maker Lucid said during its fourth-quarter earnings report that it had “over 28,000” reservations for its Air sedan as of Feb. 21, down from “over 34,000″ reservations in November.
  • It plans to build just 10,000 to 14,000 vehicles in 2023, despite factory capacity to build more.
  • Lucid stock has sold off since its earning report, as demand concerns raised questions for investors.
In this article

People test drive Dream Edition P and Dream Edition R electric vehicles at the Lucid Motors plant in Casa Grande, Arizona, September 28, 2021.
Caitlin O’Hara | ReutersLuxury electric vehicle maker Lucidappears to have a demand problem.

The company said during its fourth-quarter earnings report Wednesday that it had “over 28,000” reservations for its Air sedan as of Feb. 21. That was a surprise, given that the company had claimed “over 34,000″ reservations in November and delivered fewer than 2,000 vehicles in the fourth quarter.

Even more surprising: Lucid said it plans to build just 10,000 to 14,000 vehicles in 2023, far fewer than the roughly 27,000 Wall Street analysts had expected — and than the roughly 34,000 vehicles per year that Lucid’s factory is set up to build.

Shares of the company have fallen about 15% since the Wednesday report.

Lucid faced a rough road getting the Airinto production. The company spent much of the first half of 2022 scrambling to secure key components and untangling logistics snags. Now, with production running more or less smoothly, it seems to be facing a new problem: Not enough of its reservations are converting to orders.

CEO Peter Rawlinson acknowledged as much during the earnings call when he reminded listeners that reservations aren’t binding.

“We’ve solved production. That is not the gating issue here now,” Rawlinson said. “My focus is on sales. And here’s the thing: We’ve got what I believe to be the very best product in the world. ... Too few people are aware of not just the car, but even the company.”

Rawlinson went on to say he believes that to be an “entirely solvable problem” and plans to focus on “amplifying customer awareness” in 2023.

More marketing might help. But clearly, demand for Lucid’s vehicles isn’t materializing as quickly as the company expected, which raises some tough questions for investors.

First, how big is Lucid’s potential market? Any estimate of how much Lucid could grow has to start with an estimate of the “total addressable market,” and it appears the company’s estimates on that front may have been too rosy, given that its factory is set up to produce many more vehicles than it’s building now.

Running an auto factory well below capacity isn’t exactly a route to profitability, as Chief Financial Officer Sherry House conceded during Lucid’s earnings call.

“As we produce vehicles at low volumes on production lines designed for higher volumes, we have and we will continue to experience negative gross profit related to labor and overhead costs,” House said.

That leads to a second, related question: How long will Lucid have to run its factory at a loss? Or, put another way, how long will it take Lucid to get to profitability — and how much money will it have to raise between now and then?

Bank of America analyst John Murphy has long been bullish on Lucid, but in a note to investors following Lucid’s earnings report, he cut the bank’s rating on the stock to hold, from buy. Murphy wrote that he now thinks Lucid won’t break even before 2027, and that the company will need to raise more capital sooner than he had previously expected.

The good news is that Lucid has a deep-pocketed investor. Saudi Arabia’s Public Investment Fund owns about 62% of Lucid, and has shown — most recently in December, when it invested an additional $915 million — that it’s still willing to fund the company. As long as it has the Saudi fund’s backing, Lucid should be able to keep going.

But the road to profitability — and to a big payday for Lucid’s investors — is now looking longer.

In this article
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Old Feb 25, 2023 | 10:06 AM
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Building a car from scratch is just way too complicated for a startup company. I don't expect things to end well for Lucid. I already experimented with a science project, getting a Jaguar I Pace right after it came out. At least Jaguar had been building cars for a long time, but you can just tell it does not have the engineering resources to really pull it off...so many early problems, and the service departments were just not ready to handle something so new and different. I felt much better about buying a first year MB EV, because of their vast engineering resources, and need to make it work well for the eventual transition to electric. There will be problems, I know, but the EQS does not feel like a beta testing project, like the Lucid will be.
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Old Feb 25, 2023 | 11:40 AM
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Paraphrasing the one quote that Rawlinson will never live down is, “We are not going to make the same mistakes Tesla did at the beginning.”
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Old Feb 25, 2023 | 12:08 PM
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Another round of ICE
Dear Peter, You might make the argument that you have the best EV powertrain in the world, given range and performance, but you designed into a decreasing demand segment (large car) with an awkward conventional trunk (vs higher demand liftgate Crossover/UV), forced everyone to get black front seats (no, it's not "cool" like an airplane cockpit), priced it as if it was an established high-quality product, and can't build them at that level. What could possibly be the problem? Look over at the MB showroom...want to guess if the EQ UVs will outsell the sedans? Yes, I look at Lucids when the one or two I've seen drive by, as the exterior design is nice, but that's the end of the overall low level of appeal.
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Old Feb 25, 2023 | 05:40 PM
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Originally Posted by Sportstick
Dear Peter, You might make the argument that you have the best EV powertrain in the world, given range and performance, but you designed into a decreasing demand segment (large car) with an awkward conventional trunk (vs higher demand liftgate Crossover/UV), forced everyone to get black front seats (no, it's not "cool" like an airplane cockpit), priced it as if it was an established high-quality product, and can't build them at that level. What could possibly be the problem? Look over at the MB showroom...want to guess if the EQ UVs will outsell the sedans? Yes, I look at Lucids when the one or two I've seen drive by, as the exterior design is nice, but that's the end of the overall low level of appeal.
I don’t even think the exterior design is nice. Too plain.

In any case, the consensus is that Lucid sucks. On top of that, it’s largely funded by the murderous crown prince of Saudi Arabia.

I will never buy a Tesla and I will never buy a Lucid.
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Old Feb 25, 2023 | 09:49 PM
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Originally Posted by AppleFan1
I don’t even think the exterior design is nice. Too plain. In any case, the consensus is that Lucid sucks. On top of that, it’s largely funded by the murderous crown prince of Saudi Arabia. I will never buy a Tesla and I will never buy a Lucid.
100& agree.BTW, I love how the EQS looks. Sculpted by the wind.
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Old Feb 26, 2023 | 08:49 AM
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Originally Posted by c4004matic
100& agree.BTW, I love how the EQS looks. Sculpted by the wind.
The only EV I've seen which I think is better looking than the EQS is the Audi etron sport. I do, however, lament the problems Lucid is having. Their initial presentation sounded so promising. I would add another deterrant to buying one, and that is finding service, should it be needed. As has been said, a startup is very difficult to achieve.
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Old Feb 26, 2023 | 10:33 AM
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Originally Posted by hlothery
The only EV I've seen which I think is better looking than the EQS is the Audi etron sport. I do, however, lament the problems Lucid is having. Their initial presentation sounded so promising. I would add another deterrant to buying one, and that is finding service, should it be needed. As has been said, a startup is very difficult to achieve.
I know beauty is supposed to be determined by the individual but if you think the EQS looks better than the Taycan then I suggest that you see a mental health professional.
IMO the EQS was the ugliest EV until the Hyundai Ionic 6 showed it’s ugly face.
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Old Feb 26, 2023 | 10:39 AM
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I guess I’ll be the odd man out on this subject. I could care less what a vehicle looks like. I buy them for what they can do for me and that experience…..

Last edited by Utopia Texas; Feb 26, 2023 at 10:45 AM.
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Old Feb 26, 2023 | 10:49 AM
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Another round of ICE
Originally Posted by Utopia Texas
I guess I’ll be the one man out on this subject. I could care less what a vehicle looks like. I buy them for what they can do for me and that experience…..
I think I agree with you but within the range of most manufacturers, I'm actually all the way at "couldn't" for a family car such as these.

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Old Feb 26, 2023 | 11:07 AM
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I’ve just never been someone who goes along with what is popular or drives something because some complete stranger on the Internet makes a YouTube video with his/her opinions. I like what I like a do not worry about what strangers on the highway think. Not out to impress with the newest shiny object. 😊
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Old Feb 26, 2023 | 11:35 AM
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Originally Posted by Utopia Texas
I’ve just never been someone who goes along with what is popular or drives something because some complete stranger on the Internet makes a YouTube video with his/her opinions. I like what I like a do not worry about what strangers on the highway think. Not out to impress with the newest shiny object. 😊

I've mentioned this before. One of my friends told me that my Dad's '59 180 was an ugly little car. That did not diminish my love for that car one iota.
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Old Feb 26, 2023 | 02:59 PM
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Originally Posted by MBNUT1
I've mentioned this before. One of my friends told me that my Dad's '59 180 was an ugly little car. That did not diminish my love for that car one iota.
Amento that...

AND to the thinking expressed above about buying such a product from a brand new company and factoory...

AND from t hose funding it.
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Old Feb 26, 2023 | 09:28 PM
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Went to test drive a CPO EQS450 today and was not impressed at all with the build quality / overall feel. Found the microfiber fabric they have started to use on the armrests (even with exclusive leather interior) to feel towel like and there were squeaks/rattles all over the dash anytime I hit any road imperfections. The lack of acceleration, brake feel and different Regen modes didn't feel natural (and I tried all three modes using the paddles). Did not feel worthy of the "S" title, but I haven't driven the new S either. Perhaps it was just the one I drove, but squeaks/rattles on a CPO with 7K miles was a huge turn off. Disappointed as was hoping to trade my E wagon for it. But after driving the EQS, it felt cheap and overall not as solid/refined with all the black plastic compared to my E450 wagon (except the leather on the seats, which was fantastic). Car did look better in person compared to online pictures, which was a plus. And I'm sure at night time, the interior looks amazing with the lights.

I also own a Lucid and the build quality is MUCH higher than whatever MB is putting in their EQ interiors. It drives and handles much better than the EQS. Suspension on the EQS felt similar despite Lucid not having air suspension. The EQS did not feel as smooth on the road as my E450 with Active Body Control. To each their own, but hoping the build quality gets better.
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Old Feb 26, 2023 | 09:36 PM
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So don’t bother with it.

Loved my 450+; ordered à replacement after an accident.

To each his own.
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Old Feb 27, 2023 | 12:21 AM
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Originally Posted by newyorktoLA
Went to test drive a CPO EQS450 today and was not impressed at all with the build quality / overall feel. Found the microfiber fabric they have started to use on the armrests (even with exclusive leather interior) to feel towel like and there were squeaks/rattles all over the dash anytime I hit any road imperfections. The lack of acceleration, brake feel and different Regen modes didn't feel natural (and I tried all three modes using the paddles). Did not feel worthy of the "S" title, but I haven't driven the new S either. Perhaps it was just the one I drove, but squeaks/rattles on a CPO with 7K miles was a huge turn off. Disappointed as was hoping to trade my E wagon for it. But after driving the EQS, it felt cheap and overall not as solid/refined with all the black plastic compared to my E450 wagon (except the leather on the seats, which was fantastic). Car did look better in person compared to online pictures, which was a plus. And I'm sure at night time, the interior looks amazing with the lights.

I also own a Lucid and the build quality is MUCH higher than whatever MB is putting in their EQ interiors. It drives and handles much better than the EQS. Suspension on the EQS felt similar despite Lucid not having air suspension. The EQS did not feel as smooth on the road as my E450 with Active Body Control. To each their own, but hoping the build quality gets better.
You must have driven a lemon. There are NO squeaks and rattles on the EQS. It’s silent. If you want more powerful acceleration, check out the EQS 580. I’m not calling you a liar by any means, but I very much doubt the build quality of the Lucid is as good as the EQS. From everything I have read, the Lucid is cheaply built.
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Old Feb 27, 2023 | 10:19 AM
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Originally Posted by newyorktoLA
Went to test drive a CPO EQS450 today and was not impressed at all with the build quality / overall feel. Found the microfiber fabric they have started to use on the armrests (even with exclusive leather interior) to feel towel like and there were squeaks/rattles all over the dash anytime I hit any road imperfections. The lack of acceleration, brake feel and different Regen modes didn't feel natural (and I tried all three modes using the paddles). Did not feel worthy of the "S" title, but I haven't driven the new S either. Perhaps it was just the one I drove, but squeaks/rattles on a CPO with 7K miles was a huge turn off. Disappointed as was hoping to trade my E wagon for it. But after driving the EQS, it felt cheap and overall not as solid/refined with all the black plastic compared to my E450 wagon (except the leather on the seats, which was fantastic). Car did look better in person compared to online pictures, which was a plus. And I'm sure at night time, the interior looks amazing with the lights.

I also own a Lucid and the build quality is MUCH higher than whatever MB is putting in their EQ interiors. It drives and handles much better than the EQS. Suspension on the EQS felt similar despite Lucid not having air suspension. The EQS did not feel as smooth on the road as my E450 with Active Body Control. To each their own, but hoping the build quality gets better.
Do you happen to have the vin nimber of that car? It's possible it was an early production car given that it's a first model year
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Old Feb 28, 2023 | 08:27 AM
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Originally Posted by Tjdehya
I know beauty is supposed to be determined by the individual but if you think the EQS looks better than the Taycan then I suggest that you see a mental health professional.
IMO the EQS was the ugliest EV until the Hyundai Ionic 6 showed it’s ugly face.
The Audi etron sport is a visually enhanced taycan. Most mental health professionals I have known know nothing about cars.
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Old Feb 28, 2023 | 09:54 AM
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Originally Posted by Tjdehya
I know beauty is supposed to be determined by the individual but if you think the EQS looks better than the Taycan then I suggest that you see a mental health professional.
IMO the EQS was the ugliest EV until the Hyundai Ionic 6 showed it’s ugly face.
All this talk about comparing the looks of one car vs another is just plain foolishness. Everybody here knows people have different tastes, so why bother with this kind of post? You're not going to change anyone's minds with your insulting suggestions, and you're wasting space here simply to justify your differing opinions.

My credentials are that my son owns a Taycan that he loves, and I own an EQS450+ that I love.
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Old Feb 28, 2023 | 05:59 PM
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EQS is much quieter than my S560. MY problem is like the problem others have.....can't travel very far.

The meaning of that is, I can't travel the 435 miles from home to Whitecap Beach, Corpus Christi, Texas and get back home the same day. I see NO fast chargers in Corpus Christi, Texas. I do not stay overnight in some fleabag hotel and charge at level 2 chargers.

it's just a town/regional car imho and not much more. I'm keeping it for when WTI gets up to 100-150 smackers.

Had two Tesla S Models and their range is NOT 405 miles unless you put it on a cargo plane and fly it 405 miles. Might as well be comfortable in the city in a EQS vs a Tesla buckboard. Hey! How about putting that 4.0 liter from the S Class into the EQS? and keeping the noise at the same leverl? .....jk
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Old Feb 28, 2023 | 05:59 PM
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Never heard a rattle or a squeek in my 450+, with 13.5K miles on the clock....unless it was from a vehicle I was sharing the road with, since the EQS is so quiet. Glad you like the Lucid, and wish you well. Your observations of the EQS are not generally shared by anyone here........except trolls trying to get a reaction from our forum members.
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Old Mar 1, 2023 | 08:53 AM
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Originally Posted by HAILERS2
EQS is much quieter than my S560. MY problem is like the problem others have.....can't travel very far.

The meaning of that is, I can't travel the 435 miles from home to Whitecap Beach, Corpus Christi, Texas and get back home the same day. I see NO fast chargers in Corpus Christi, Texas. I do not stay overnight in some fleabag hotel and charge at level 2 chargers.

it's just a town/regional car imho and not much more. I'm keeping it for when WTI gets up to 100-150 smackers.

Had two Tesla S Models and their range is NOT 405 miles unless you put it on a cargo plane and fly it 405 miles. Might as well be comfortable in the city in a EQS vs a Tesla buckboard. Hey! How about putting that 4.0 liter from the S Class into the EQS? and keeping the noise at the same leverl? .....jk
I just looked at Corpus Christi on Plugshare...there are several Level 3 chargers. What site are you looking at to not find any?
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Old Mar 1, 2023 | 09:18 AM
  #25  
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From: Brookshire, Texas & Cat Spring, Texas
2019 SL550/2023 EQS 580 SUV
Originally Posted by HAILERS2
EQS is much quieter than my S560. MY problem is like the problem others have.....can't travel very far.

The meaning of that is, I can't travel the 435 miles from home to Whitecap Beach, Corpus Christi, Texas and get back home the same day. I see NO fast chargers in Corpus Christi, Texas. I do not stay overnight in some fleabag hotel and charge at level 2 chargers.

it's just a town/regional car imho and not much more. I'm keeping it for when WTI gets up to 100-150 smackers.

Had two Tesla S Models and their range is NOT 405 miles unless you put it on a cargo plane and fly it 405 miles. Might as well be comfortable in the city in a EQS vs a Tesla buckboard. Hey! How about putting that 4.0 liter from the S Class into the EQS? and keeping the noise at the same leverl? .....jk
Just out of curiosity how can you drive a 870 mile round trip in one day and stay more than 30 seconds in Corpus Christi? 😊
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