Mercedes-Benz Halts EQE and EQS Sales in the U.S. Amid EV Strategy Shake-Up

Mercedes-Benz has announced a temporary halt to production and sales of its EQE and EQS electric vehicles (all variants) for the U.S. market, starting September 1, 2025. While the automaker hasn’t clarified how long the pause will last, it has closed order books for both models across U.S. dealerships.

This decision comes just weeks before the $7,500 federal EV tax credit—introduced under the Biden administration—is set to expire on September 30. While Mercedes has not directly linked the two events, the timing raises questions. Still, with the EQE starting at around $76,000, it’s debatable whether a $7,500 incentive is a true dealbreaker for the average buyer in this segment.

Another possible factor? The design reception. The EQE and EQS emphasized aerodynamic efficiency over aesthetics, leading to criticism for their “bland” and “uninspired” looks. Despite their strong performance and luxury features, these EVs have struggled to capture widespread attention.

While U.S. production of the EQE and EQS will continue for export markets, this shift signals a broader change in Mercedes’ EV roadmap. The company is now pivoting to EV versions of its popular ICE models, starting with the electric CLA and an upcoming GLC EV SUV—designs that already resonate well with consumers.

As competition heats up in the EV space, Mercedes is clearly realigning its approach to match market demand more closely.