Mercedes-Benz is hitting the brakes on U.S. deliveries of its EQ-branded electric vehicles, temporarily closing order books and pausing production for the domestic market starting September 1. The decision comes as the German automaker faces slowing EV demand, high dealership inventories, and the looming expiration of federal EV tax credits.
A company spokesperson told Reuters, “Mercedes-Benz is temporarily putting on hold order banks for EQ models in the U.S. to align with current market demand.” The automaker has not provided a timeline for when production or deliveries might resume.
The production pause affects all U.S.-bound EQE and EQS sedans and SUVs, including their various trims. Mercedes confirmed that production at its Tuscaloosa, Alabama facility—which builds the EQE and EQS SUVs—will continue for export markets, while the sedan variants, assembled in Germany, will no longer be shipped to U.S. buyers for the time being.
This retreat aligns with comments made by CEO Ola Källenius during the company’s Q2 2025 earnings call. While reaffirming Mercedes’ long-term belief in battery-electric vehicles, Källenius acknowledged that adoption in the U.S. is progressing slower than expected. “We don’t believe that BEV demand in the United States goes to zero,” he said. “We still think the medium- to long-term adoption rate will creep upwards.”
Mercedes-Benz EQ Price Reductions
To help move existing inventory, Mercedes said will also implement significant price reductions starting with the 2026 model year. Base prices of the EQE and EQS sedans and SUVs will be cut between 4% and 16%, excluding delivery fees.
Sales figures highlight the difficulty Mercedes has had with its EQ lineup. In the first half of 2025, EQS SUV shipments dropped 32%, while EQE crossover deliveries fell 35%. Some EQ models have taken over 100 days to sell, well above the industry average.
The pause also comes just weeks before the expiration of U.S. federal EV tax credits on September 30, following President Trump’s latest budget bill. Since Mercedes’ EQ sedans are imported, they were already ineligible for incentives unless leased—putting them at a further disadvantage compared to domestic EVs.
