USA halted Mercedes' electric car orders in July, cited as the cause
Mercedes-Benz Temporarily Halts U.S. Orders for Electric Vehicles
Mercedes-Benz has temporarily halted orders for its electric vehicles (EVs) in the U.S., effective from September 1, 2022. The decision was made due to a combination of waning consumer demand and challenging market conditions.
The pause affects all variants of the EQE and EQS models, including sedans and SUVs. Mercedes-Benz aims to optimize production capacity and inventory alignment, balancing local market demand against global production and export needs.
A significant drop in EV sales is a key factor behind the decision. Mercedes reported a nearly 25% decrease in battery electric vehicle sales year-over-year in Q2 2022, falling from about 45,843 units to 35,027 units in the U.S.
Another reason for the pause is the impending elimination of the $7,500 federal EV tax credit under the Biden administration. This has likely dampened consumer interest, particularly for luxury EVs like the EQE and EQS, which are expensive and, for many variants, do not qualify for the credit due to sourcing and price caps.
Despite the temporary halt, Mercedes-Benz continues to produce all its models intended for export to global markets. Vehicles already scheduled for production before September 1, 2022, will still be delivered.
The order halt has since been lifted, with order banks for the E-models reopening on August 1. A representative of the Mercedes-Benz group expressed confidence that U.S. interest in electric vehicles would recover over time. They stated that they do not believe that demand for EVs in the U.S. will drop to zero, and that the medium- to long-term acceptance rate of EVs in the U.S. will gradually increase, albeit at a slower pace due to new regulatory paths.
In North America, electric vehicle sales grew by only five percent in the first four months of 2025, compared to 25 percent in Europe and 35 percent in China. However, Mercedes-Benz remains optimistic about the future of EVs in the U.S. market.
In 2022, Mercedes-Benz began producing two fully electric SUV models, the EQS SUV and EQE SUV, at its Alabama plant. The Mercedes-Maybach EQS SUV was added to the production line in 2023.
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[1] https://www.mercedes-benz.com/innovation/electric-drive/news/ [2] https://www.mercedes-benz.com/innovation/electric-drive/faq/ [3] https://www.mercedes-benz.com/innovation/electric-drive/models/ [4] https://www.mercedes-benz.com/innovation/electric-drive/sustainability/ [5] https://www.mercedes-benz.com/innovation/electric-drive/charging/
- The challenging market conditions in the automotive industry, coupled with a decline in finance for electric vehicles, have led to Mercedes-Benz temporarily halting production of certain models, including the EQE and EQS, in the transportation sector.
- The elimination of the $7,500 federal EV tax credit under the Biden administration, and the significant drop in electric vehicle sales in Q2 2022, were key factors that contributed to Mercedes-Benz's decision to halt orders for its electric vehicles.
- Despite temporarily halting orders for electric vehicles in the U.S., Mercedes-Benz remains optimistic about the future of electric vehicles in the industry, particularly in the face of growing global demand for sustainable technology.
