Mercedes-Benz is temporarily halting production and sales of its EQ-branded electric vehicles in the United States starting September 1, 2025. This move affects all variants of the EQE and EQS sedans and SUVs, including those built at the company’s Tuscaloosa, Alabama plant and imports from Germany.
The automaker has informed dealers that order books for these models are now closed. Vehicles already scheduled for production before the September 1 deadline will still be built and delivered. A Mercedes-Benz USA spokesperson confirmed the decision and emphasized that the production halt only applies to U.S.-bound vehicles.
End of EV Tax Credits a Major Factor
The pause comes as the U.S. prepares to end its federal EV tax credit program on September 30, following new legislation passed under President Donald Trump’s budget plan. Notably, none of the EQ models were eligible for the credit unless leased—a factor that limited their competitiveness in the growing EV market.
Industry analysts expect a dip in electric vehicle sales once the incentives expire, particularly for higher-end models like the EQ lineup, which were already under pressure from more affordable and better-incentivized competitors.
EQ Lineup Struggles to Find Footing in the U.S.
Despite being technological showcases for the brand, the EQE and EQS struggled to resonate with American consumers. Sales of the EQS sedan and SUV dropped 52% in 2024 compared to the previous year. Feedback often centered around their divisive, streamlined styling and interiors that failed to match the luxury feel of their gasoline counterparts like the E-Class and S-Class.
Even Mercedes executives have acknowledged that the designs didn’t carry the signature Mercedes-Benz gravitas. The EQ cars, while efficient and packed with features, seemed disconnected from the brand’s core identity.
A New Strategy: Electric Versions of Familiar Models
Mercedes-Benz is now repositioning its EV efforts by moving away from standalone EQ branding. Future electric offerings will be integrated into existing model lines, reflecting a shift in design and strategy.
The upcoming electric CLA sedan and wagon, as well as a new electric GLC SUV, are expected to embody this approach. Mercedes also recently teased an electric version of the iconic G-Class, which will retain the brand’s signature look and feel while going fully electric.
“Local-for-Local” Production Flexibility Still Key
Despite the pause, Mercedes-Benz says its commitment to U.S. manufacturing remains unchanged. The company continues to rely on its flexible global production network and local-for-local manufacturing model to respond to evolving market conditions.
Final Chance for EQ Buyers?
If you’ve been considering buying a new EQE or EQS, this might be your last opportunity—at least for the foreseeable future. With the production window closing and tax credits expiring, the remaining models could soon become rare finds.
At the same time, used EQ models have seen sharp price drops, offering compelling value for those open to buying pre-owned.
