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Mercedes-Benz Halts U.S. EQS and EQE Orders to Align With Slowing Demand

Mercedes will fulfill pre-September 1 orders as Alabama plants shift EV output to export markets to cut high inventories and address a 25% Q2 sales decline.

Mercedes-Benz logo is seen in this illustration taken July 28, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Mercedes-Benz' electric cars are displayed outside the company's offices in Lisbon.
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Overview

  • Order banks for all EQS and EQE sedans and SUVs in the U.S. have been temporarily suspended to match weakened consumer demand.
  • Vehicles scheduled for production before September 1 will still be delivered to U.S. customers as planned.
  • Assembly at Tuscaloosa and Vance, Alabama, will continue for export shipments while domestic orders remain on hold.
  • Mercedes cited slowing demand, high dealership inventories and President Trump’s early termination of the $7,500 federal EV tax credit as factors behind the pause.
  • Battery-electric vehicle sales slipped nearly 25% year on year in Q2, though CEO Ola Källenius expects U.S. EV adoption to recover gradually over the medium to long term.