Mercedes-Benz Temporarily Halts EV Orders in the US Amidst Market Shifts





Mercedes-Benz, a prominent German luxury car manufacturer, has announced a temporary cessation of new orders for several of its sought-after electric vehicle models within the American market. This move affects the EQS and EQE lines, encompassing both sedan and SUV variants, and has been primarily attributed to evolving market dynamics and impending policy changes in the United States. Concurrently, the federal electric vehicle tax credit is slated to conclude, adding another layer to the strategic adjustments undertaken by the automaker. Despite this temporary pause, the company is poised for a significant expansion in its electric vehicle portfolio.
The suspension of orders for the EQS and EQE models in the United States took effect recently, with Mercedes-Benz citing "current market conditions" as the primary driver behind this decision. This strategic pivot by the automaker is also influenced by anticipated shifts under the upcoming US administration. While the ability to place new orders for these specific models has been halted, consumers may still find existing inventory available at dealerships. Interestingly, Mercedes-Benz had previously reduced prices on its remaining EV inventory by up to $15,000 earlier this month, indicating a proactive approach to managing stock.
Further impacting their US electric vehicle lineup, Mercedes-Benz is set to discontinue production of the EQS and EQE SUV models at its Vance, Alabama facility, specifically for the US market, starting September 1. However, the plant will continue to manufacture these vehicles for export to other international markets. Separately, the EQB model is also being phased out from the US and Canadian markets after the 2025 model year, marking the planned end of its product lifecycle.
A critical factor influencing Mercedes-Benz's decision is the upcoming expiration of the federal EV tax credit in the US at the end of September. This policy change undoubtedly plays a role in the broader market adjustments observed across the automotive industry, as manufacturers adapt to evolving incentives and consumer purchasing behaviors.
Despite the current adjustments, Mercedes-Benz is preparing for an extensive "product offensive" in its electric vehicle segment. The autumn will see the launch of the new 2026 CLA EV, which will be followed by the introduction of two new electric SUVs built on the same advanced MMA platform. Furthermore, the company is expected to unveil the electric version of its highly popular GLC SUV at the Munich Motor Show in approximately one month, signaling a robust future commitment to electrification despite immediate market realignments.
In summary, Mercedes-Benz is strategically navigating a dynamic market in the United States by temporarily pausing orders for certain EV models, influenced by current economic conditions and the cessation of federal tax incentives. However, this pause is part of a larger, forward-looking strategy that includes significant new electric vehicle launches, underscoring the brand's long-term dedication to electric mobility globally.