Starting September 1, Mercedes will suspend shipments of every variant in its EQE and EQS line—sedans and SUVs—while continuing to assemble those vehicles for export to other markets. U.S. dealers have been told to stop accepting new orders for the EQS Sedan, EQS SUV, EQE Sedan, and EQE SUV, according to statements provided to The Drive and InsideEVs. But the hiatus isn’t permanent—or at least that is the automaker’s official line.
In parts of the country where manufacturing and sales are happening locally, the impact may feel muted: the Tuscaloosa, Alabama plant will continue building EQ SUVs for export, alongside the gasoline-powered GLE and GLS. German factories at Sindelfingen and Bremen will still produce the EQS and EQE sedans. A Mercedes spokesperson emphasized the flexibility of its “local-for-local” strategy and reassured that production will continue in line with demand “for global markets”.
But the timing tells a different story. The pause comes just before the federal $7,500 EV tax credit expires on September 30, a change precipitated by budget legislation passed earlier this month (EVXL.co). This “cliff” has rattled EV makers and buyers alike. Analysts expect a final surge of purchases in late summer, followed by a steep drop-off once credits vanish.
Mercedes‑Benz EQ sales were already soft in the U.S. In the first half of 2025, deliveries slid nearly 50 percent compared with 2024 . Critics cited an unorthodox design language—nicknamed “jelly bean”—and interiors that fell short of the tactile luxury buyers expect from the iconic E-Class and S-Class.
As inventories accumulated, Mercedes slashed prices in recent weeks—up to $15,300 off select models—to clear lots before the pause, according to on-site reports from a Mercedes executive in Ohio shared on TikTok . For example, the EQE sedan dropped from $76,050 to $66,100; the EQS SUV by $15,300; and EQS Sedan by roughly $5,000.
Industry sources suggest that Mercedes views this intervention as tactical—managing supply rather than pulling back from electrification. Next-generation EVs, built on the upcoming Modular Architecture (MMA), are already in execution. The electric version of the CLA sedan is on track for U.S. launch later in 2025, followed by an electric GLC slated for a revealing at September’s Munich IAA auto show.
But the EQ pause has set off alarm bells across the electric vehicle landscape. A Gizmodo editorial warned that Mercedes’s move may serve as “a canary in the coal mine,” suggesting that without federal subsidies the EV market could see more retrenchment.
Yet others see the pause as an anticipated wobble, not a collapse. A TruthAboutCars analysis noted that fleet incentives often drive last-minute sales and suggested that a short-term pullback might precede a more cautious recovery.
Technology and cost remain in Mercedes’s favor, even as strategy adjusts. The EQE and EQS share architecture with high-performance plug-in hybrid AMG models and benefit from investment in manufacturing flexibility—a legacy of the company’s combustion heritage. But the fuzzy middle ground—luxury EV at six-figure price tags without subsidy—has proven difficult terrain.
What, then, are the implications for Mercedes’s electrification roadmap? First, the pivot to MMA-based vehicles hints at a return to familiar forms—sedans like the CLA and SUVs like the GLC—eschewing the standout aesthetic of early EQs. The company hopes these feel more like luxury sedans than concept-car sculptural statements.
Second, the company retains its EV ambition, albeit recalibrated. CEO Ola Källenius has previously extended electrification goals, aiming for 50 percent of sales to be electrified by 2030—a target pushed out five years from earlier forecasts . The pause may simply reflect pending recalibration, not retreat.
Still, the move underscores fragile market conditions ahead. The federal tax credit disappearance will dry up a bidding engine that has buoyed U.S. EV sales for years ). Whether automakers can offset the loss with lower prices, infrastructure investments or new business models remains an open question—and one Mercedes must answer faster than perhaps any other.
Unlike Tesla, which sells directly and unburdened by dealer profit pressures, legacy automakers carry more complex sales chains. Clear-the-deck markdowns, paused shipments and new architecture present a monumental balancing act: preserving brand prestige while defending growth.
As September approaches, Mercedes dealers face uncertainty. Without new EQ models coming in, they head into a fall with service capacity but evaporating inventory. Meanwhile, customers weighing a high-end EV purchase may accelerate decisions—or wait for the federal credits to return under a new administration.
For Mercedes, the EQ pause is both a retreat and a realignment. The company is betting that its next-stage electric models will resonate where the first generation faltered. But the intervening months may define whether its strategy is bold but blurry—or decisive and visionary.