Mercedes lowers prices on EQ models amid slowing EV demand

Mercedes is slashing prices on its electric cars

Mercedes-Benz is reducing prices across its U.S. electric vehicle lineup, and the discounts are substantial. With EV sales growth slowing and the federal EV tax credit ending on September 30, 2025, Mercedes-Benz is cutting prices to stay competitive.

These aren’t minor adjustments; they’re major markdowns that could change how people shop for luxury EVs. If you’ve been on the fence about electric cars, this sale might finally tip the scales. Mercedes is hoping that lower prices will give customers a reason to look twice at their EQ models.

Some Mercedes EVs just got $10K cheaper

For the 2026 model year, Mercedes cut U.S. prices to $66,100 for both the EQE Sedan ($9,950 reduction) and EQE SUV ($12,950 reduction).

That kind of price cut is rare from a brand like Mercedes, and it sends a message: They want to move these cars now. For shoppers, this could be the best time to jump into a luxury EV before prices go back up, or supplies run out.

The EQS SUV saw the biggest price drop

While all four U.S. electric Mercedes models got price cuts, the EQS SUV took the biggest hit. The EQS SUV fell from about $106,400 to $91,100 for 2026 ($15,300).

For a full-size luxury SUV, that’s an incredible deal, especially considering the EQS SUV comes loaded with high-end features. Mercedes is betting that a lower price tag might help the EQS SUV find its place in a crowded and competitive EV market.

The EV tax credit is ending early

Federal EV tax credits (up to $7,500 new / $4,000 used) now end on September 30, 2025, under newly enacted legislation, accelerating the timeline that previously ran through 2032. That means customers will have less time to save thousands on new EV purchases.

For Mercedes, this change puts added pressure on their already struggling electric lineup. By lowering prices now, they’re trying to soften the blow for buyers who’ll soon miss out on those extra savings. The clock is ticking for those hoping to cash in before it’s gone.

Mercedes is pausing production for several models

Starting September 1, 2025, Mercedes-Benz will pause U.S. and U.S.-bound production of first-generation EQ models, EQS Sedan/SUV and EQE Sedan/SUV, with the EQB continuing. Production for other markets continues. Once the current inventory runs out, there won’t be more of these models coming in, at least for now.

That could make the 2026 versions something of a last-chance opportunity. Mercedes hasn’t said when production might resume, leaving shoppers to decide quickly. The EQB remains the only electric model staying in regular rotation on U.S. dealer lots for the time being.

Order banks are closing without a return date

Mercedes is also closing U.S. order banks for its main electric models, including the EQE and EQS variants. That means buyers won’t be able to place custom orders for these vehicles anytime soon. A spokesperson said closures are temporary with no timeline to reopen for competitive reasons.

The company cited “market demand” and “competitive reasons” as explanations. Until further notice, dealers will have to rely on whatever is already in the pipeline. Once those are sold, customers looking for specific configurations might be out of luck until new models arrive.

Why the EQ models are losing traction

Despite all the hype, Mercedes EQ vehicles haven’t sold in big numbers. The futuristic design, especially the rounded, egg-like shape, hasn’t resonated with everyone. Add in high starting prices and a crowded field of electric competitors, and it’s easy to see why the brand is pivoting.

Tesla, BMW, and even Hyundai are pulling ahead in EV sales, leaving Mercedes to rethink its approach. The steep discounts are a clear sign that what they’ve been doing isn’t working, at least not in the U.S. market, where EV buyers are becoming more selective.

New electric models are still on the way

The all-electric 2026 CLA on the MMA platform is slated for U.S. arrival in fall 2025.

It shows the brand is still betting on EVs long-term, even if the first generation hasn’t taken off as planned. The CLA could be the start of a stronger second wave, more practical, better looking, and tailored to today’s buyers.

Two all-new electric SUVs are in development

Alongside the CLA, Mercedes says the MMA platform will underpin a family of four vehicles, including SUVs, bringing newer software, efficiency, and charging tech. The idea is to reboot the electric lineup with smarter design and more flexible features.

Mercedes learned from the EQ series and now aims to deliver something that better matches market needs. These SUVs are expected to be roomier and more affordable than their EQ predecessors. For shoppers, that means more choices and likely better value soon.

The electric GLC will debut in Munich

Mercedes will debut the electric GLC at IAA Mobility in Munich on September 7, 2025. This will be a key part of their refreshed EV lineup.

The GLC is already a popular model in its gas-powered form, so the electric version could draw more interest than past EV offerings. With better range, smarter software, and competitive pricing, Mercedes hopes the new GLC will attract buyers who passed on the EQ series.

The EQB is sticking around, for now

While Mercedes is pausing its other electric vehicles, the EQB is still on sale in the U.S. It’s smaller and more affordable than the EQE and EQS models. That makes it a more attractive option for families or city drivers looking for a luxury EV that doesn’t break the bank.

The EQB’s more traditional shape may also appeal to shoppers turned off by the swoopy designs of other EQ models. As other options disappear from showrooms, the EQB may be the bridge to Mercedes’s next-gen electric future.

These are some of the lowest EV prices ever

Luxury EVs usually come with sky-high price tags, but these Mercedes markdowns bring them closer to mainstream territory. For shoppers who once saw these cars as out of reach, that’s a big deal. Getting a six-figure vehicle for under $92,000, like the discounted EQS SUV, is a rare opportunity.

The brand hopes more accessible pricing will help draw in customers who want premium quality but have been put off by past prices. With other brands still holding firm, Mercedes could stand out by offering luxury at a bargain.

Slower EV demand is shifting the strategy

Electric vehicle demand isn’t growing as fast as automakers expected. Range anxiety, charging station shortages, and high costs have made some drivers rethink switching to electric. Mercedes is adjusting to this reality by shifting focus and pricing.

Instead of pushing premium electric models at top-dollar prices, they’re rethinking what customers want and what they’ll pay. The new approach is less about flash and more about practicality. In a slowing EV market, this pivot might be exactly what’s needed to stay relevant.

Buyers are moving quickly on the deals

Dealerships across the country are already seeing more interest in the discounted models. Some shoppers who previously ignored EVs are taking a second look. As production slows and order banks close, what’s on the lot might be the last of these models for a while.

Once they’re gone, buyers will need to wait for the next generation of electric Mercedes vehicles. Anyone looking to take advantage of the lower prices should act fast, since inventory won’t last long at these numbers.

These EVs still offer top-tier features

Despite the lower prices, Mercedes isn’t cutting corners on features. The 2026 EQ models still come with premium interiors, high-end materials, and advanced driver tech. That includes massive screens, augmented reality navigation, and a smooth, quiet ride.

For many buyers, the luxury experience is still there, just with a smaller price tag. Mercedes wants to prove you can have both innovation and affordability in one sleek package. It’s a rare chance to get more car for less money.

Mercedes is rethinking electric design

The brand’s first electric vehicles leaned into futuristic styling, but that didn’t connect with all buyers. Many found the curvy, rounded shapes unappealing or too unfamiliar. The next generation, like the upcoming CLA and electric GLC, is expected to look more like traditional luxury cars.

Mercedes has heard the feedback and is working to make its EVs more approachable. Style still matters, but now it’s about balance, fresh design that doesn’t push too far. The goal is to appeal to both early adopters and long-time luxury fans.

Want to see how tech meets luxury on the road? Take a look at how the EQS uses augmented reality to guide every turn.

This shake-up could ripple across the industry

Mercedes’ slashing prices and halting production is a big move, and other automakers are watching. If it works, expect similar action from brands like Audi, BMW, and even Lexus.

Luxury electric vehicles haven’t taken off as quickly as expected, and companies are looking for ways to adapt. Mercedes is trying price cuts first. Others might follow with discounts, new designs, or slower rollouts.

But not everything is smooth sailing. See why the upcoming CLA EV is already raising eyebrows over its charging limitations.

Do you think Mercedes is making the right move with these price cuts? Share your thoughts in the comments and give us a like if you’re following the EV shake-up.

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This slideshow was made with AI assistance and human editing.