- Mercedes will halt the production of the EQ range in the US following the government’s removal of EV tax credits.
Mercedes-Benz has announced a significant shift in its electric vehicle (EV) strategy for the US market. Following the enactment of President Donald Trump’s “One Big Beautiful Bill,” the German luxury automaker confirmed that it will be pausing the production of the EQE and EQS sedan and SUV models.
According to Inside EVs, the three-pointed star marque will temporarily put on hold the assembly of the models starting September 1, 2025, in response to the removal of tax credits to EVs in the country by the end of the same month. Mercedes clarified, though, that the move only affects EQ-badged cars in the US.
Mounting Pressure for Mercedes EQ Cars
Mercedes-Benz has only limited its EQ lineup in the US to the EQE and EQS. The sedan versions of the vehicles come from the automaker’s German plant. Meanwhile, the company assembles the SUV variants in its Alabama facility.
Despite offering an impressive range and efficiency, these models have struggled to generate a substantial consumer demand. Sales figures for 2024 paint a bleak picture of the interest of consumers in them, with EQS sedan and SUV sales plummeting by 52% compared to 2023.
Analysts blamed the poor reception of the EVs due to their polarizing designs, which they believe have considerably veered away from Mercedes’ design philosophy. Additionally, critics said that their electric powertrains have failed to resonate with new and loyal customers of the brand as they lacked the appeal offered by the three-pointed star marque’s signature high-performance gas-powered engines, particularly those equipped in the E-Class and S-Class.
Moreover, pundits noted that the EQ interiors, while having a very advanced interface, often fall short of consumer expectations.
Mercedes Rethinking Its EV Strategy
Mercedes-Benz is not abandoning its electric ambitions but is instead pivoting toward a more calculated approach to its US market strategy. Even with its EQ setback, it’s still banking on the potential success of its electrified core models, following the good reviews of its new G-Class EV and anticipation for the CLA EV.
