Mercedes-Benz Adjusts Strategy with Price Cuts on EQE and EQS Models
Mercedes-Benz has taken a step back from its initial bold approach to electric vehicles (EVs), as its first dedicated EVs have not been well received by customers. The EQE and EQS sedans, along with their SUV counterparts, featured sleek, aerodynamic designs that marked a significant departure from the brand’s traditional styling. However, this innovative look did not translate into strong sales performance.
In response, the company is now recalibrating its strategy. This includes introducing a new electric CLA model, which shares the same body and underpinnings as its gasoline-powered version. While the CLA is still in development for the U.S. market, current buyers can take advantage of significant price reductions on the 2026 EQ models.
Reports from CarBuzz highlighted a deleted TikTok video from a Mercedes-Benz dealer employee, who revealed substantial price cuts for the upcoming 2026 EQ models. A Mercedes-Benz spokesperson confirmed these new manufacturer’s suggested retail prices (MSRPs), excluding the EQB, which is based on the gas-powered GLB. Here’s a breakdown of the price changes:
- EQE Sedan: $66,100 (2026) vs. $76,050 (2025)
- EQE SUV: $66,100 (2026) vs. $79,050 (2025)
- EQS Sedan: $101,400 (2026) vs. $105,550 (2025)
- EQS SUV: $91,100 (2026) vs. $106,400 (2025)
These reductions are particularly notable for the SUV variants, which are produced at Mercedes-Benz’s Tuscaloosa, Alabama plant. However, there is an important caveat: production of all four models for the U.S. market will be indefinitely paused starting September 1st. A Mercedes-Benz spokesperson confirmed this to Motor1, stating that the decision is part of the company’s broader global strategy to optimize its production network.
The statement from the spokesperson emphasized the flexibility of Mercedes-Benz’s production system, which spans over 30 plants worldwide. It also mentioned that the company cannot disclose a timeline for resuming production due to competitive reasons. More information will be shared when available.
This move comes amid several regulatory changes. The federal tax credit for EVs is set to expire on September 30th, and the U.S. government has effectively ended the Corporate Average Fuel Economy (CAFE) standards. Despite these challenges, Mercedes has several new EVs in the pipeline. The CLA is already available in Europe and is expected to arrive in the U.S. soon. Additionally, a high-performance AMG four-door model and an electric version of the popular GLC are also on the way.
While the 2026 EQ models are significantly cheaper than their 2025 counterparts, it remains uncertain whether they represent a good value. Depreciation has hit EQ models hard, and used EQS sedans can often be found for under $40,000. Even with discounts of $10,000 or more off the MSRP, potential buyers may still face financial losses.
Moreover, there are still unsold 2025 EQ models on dealer lots. Although their MSRPs are higher, dealers may offer incentives to clear inventory quickly.
New Mercedes CLA Shows Strong Performance
Despite the challenges faced by the EQE and EQS models, the new Mercedes CLA has shown promising sales figures. This model is proving to be a more successful entry into the EV market, offering a familiar design that aligns better with customer expectations.
Mercedes-Benz has acknowledged that the futuristic styling of the EQS may have been a factor in its poor sales performance. As the company continues to refine its approach to electric vehicles, it seems clear that adapting to consumer preferences will be crucial for future success.
