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Mercedes-Benz EQ models have been slow to sell, dealers report

Credit: Mercedes-Benz

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Mercedes-Benz has seen the sale of its electric vehicles (EVs) increase significantly in the U.S. this year. However, a new report shows that dealers have had difficulty keeping up with inventory levels for the automaker’s EQ lineup, with sales times for the EVs exceeding the luxury segment average.

In the third quarter, Mercedes sold 10,423 EVs in the U.S., marking a 284-percent increase year over year. Despite the gradual increase in EV sales, the German automaker’s EVs are sitting on dealership lots and are not being sold off as quickly as other vehicles.

According to a report from Automotive News citing Edmunds data, Mercedes-Benz battery-electric EQ models took an average of 82 days to sell at dealerships in September. Comparatively, vehicles across the overall luxury segment averaged 57 days, while BMW vehicles took around 38 days to sell.

In various anonymous interviews with Automotive News, Mercedes dealers pointed to the brand’s lack of effort in responding to growing EV competition with sales programs and to the products themselves as the reasons for heightened inventory levels. One person who runs a Mercedes store said he currently has over six months’ worth of EVs and only a 50-day supply of the company’s gas cars.

“The EVs are coming whether or not you asked for them or earned them,” the retail store operator said. “There is too much of a price premium — especially at the top end of the EQ lineup — and almost no [lease] support.”

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He added that the EQ models didn’t have the same “lust factor” as some of the automaker’s classic gas cars, including the S-Class sedan and the AMG-GT coupe.

“Our cars need to be ‘want’ cars,” he said. “The S-Class has maintained good loyalty because it’s aspirational. An EQS is not something that most people aspire to own.”

Credit: Automotive News

A Mercedes spokesperson declined to comment on internal discussions with its retailers.

CEO of Mercedes-Benz U.S., Dimitris Psillakis, blamed slow sales on a lack of product variety and on the EV segment being so new. Additionally, he pointed to issues in the supply chain as preventing variety at dealerships and keeping some more affordable models, such as the EQB compact EV, off of their lots.

“We are with a new lineup in a new world,” Psillakis said. “There is no past, there is no experience. We still face challenges around our product lines and have some restrictions coming from suppliers. We don’t always get the volume we want when we want it.”

Psillakis also said that Mercedes didn’t have any supply of the affordable EQB at the beginning of the year. Although this has changed, he says that it still takes time for the EV to reach dealers.

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The Mercedes-Benz EV lineup and pricing structure is as follows, according to the automaker’s website:

  • EQB (SUV); starts at $52,750
  • EQE (sedan); starts at $74,900
  • EQE (SUV); starts at $77,900
  • EQS (sedan); starts at $104,400
  • EQS (SUV); starts at $104,400

Other automakers have also faced difficulty in moving EVs alongside inflation and rising interest rates, and especially in the luxury segment.

The average EV overall sold in 36 days near the beginning of this year, according to a Cloud Theory report cited by Automotive News. By September, the report showed that this number had jumped to 80 days.

The problem is even worse for Mercedes and in the luxury segment overall. The average luxury EV sales time across brands increased by 73 percent in September compared to the same month last year, according to the aforementioned Edmunds data. For Mercedes dealers, the rate increased by 110 percent year over year.

“The ship of early adopters — willing to put a reservation down on virtually any EV announced — has sailed,” says Edmunds Insights Director Ivan Drury.

The report comes after Mercedes delayed its internal goals for electrification earlier this year, now aiming to reach a milestone of half of its auto sales being plug-in hybrids or fully electric by 2026 instead of a year prior. It also comes after Mercedes joined other automakers in adopting Tesla’s charging hardware, dubbed the North American Charging Standard (NACS).

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Mercedes-Benz to launch Level 3 automated driving tech in the US by Q4

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Elon Musk

Tesla CEO Elon Musk teases Optimus job that’s straight out of Robocop

“If somebody’s committed a crime, we might be able to provide a more humane form of containment of future crime. You now get a free Optimus, and it’s just going to follow you around and stop you from doing crime.”

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Credit: @heydave7/X

Tesla CEO Elon Musk teased a potential job for the company’s Optimus robot last week that is straight out of the movie “Robocop.”

“Robocop” aimed to show a futuristic look at law enforcement in a Sci-fi thriller that was among the first iterations of how robots could be used for police work.

The 1987 film showcased an injured cop turning into an armed cyborg, and although Tesla’s Optimus won’t be a human-robot hybrid, Musk’s idea for the humanoid project is similar.

Musk said last week at the Annual Shareholder Meeting, where shareholders voted to approve his $1 trillion compensation plan, that Optimus could be the future of law enforcement, nearly revolutionizing the way criminals are prosecuted.

He hinted that Optimus could actually be used as a chaperone of sorts, arguing that it was a “more humane form of containment of future crime.” Musk said:

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“If somebody’s committed a crime, we might be able to provide a more humane form of containment of future crime. You now get a free Optimus, and it’s just going to follow you around and stop you from doing crime. Other than that, you get to do anything; it’s just going to stop you from committing crime. That’s really it. You don’t have to put people in prisons and stuff. It’s pretty wild to think of all the possibilities, but I think it’s clearly the future.”

Musk’s overall idea for Optimus is to change the way people are able to exist, from those law-abiding citizens to others who have their run-ins with the law. Instead, the Tesla CEO believes there could be a different way to handle everything, including punishment.

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It was not the only thing that Musk indicated could be changed significantly by the presence of humanoid robots, as he also said a universal basic income could be established with the help of products like Optimus.

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Elon Musk

Elon Musk teases huge merger: ‘Trending towards convergence’

“My companies are, surprisingly in some ways, trending towards convergence.”

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Elon Musk recently amplified the thoughts of Morgan Stanley analyst Adam Jonas, who had insight into the “Muskonomy” of his potentially interconnected ventures, something that was proposed at the recent Tesla Shareholder Meeting with xAI.

Musk’s words indicate a potential strategic fusion that could serve as a blueprint for future innovation–but it is dependent on a conglomeration between the many entities the CEO serves.

As Tesla grapples with scaling Optimus and preparing for its imminent production and the development of the Full Self-Driving suite, xAI’s computational edge could provide leverage for the millions of miles of data the company accumulates, providing a more stable and accurate development strategy for the autonomous and AI efforts it has put its chips all in on.

After Tesla Shareholders voted to deny Tesla and xAI’s potential financial partnership through an investment, Jonas said it was an issue that would have to be revisited due to its importance.

xAI has the opportunity to provide an incredible strategic and financial bolstering to Tesla, especially with how important a role data plays in the development of the company’s biggest products.

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Jonas wrote in a note to investors:

“They’re gonna have to revisit this. We don’t think investors understand just how important xAI is to Tesla and the broader Muskonomy. Tesla’s relationship with xAI (financially and strategically) is deterministic to the long-term success of Tesla due in part to the natural synergies of data, software, hardware, and manufacturing in recursive loops. The values (and value systems) of both Tesla and xAI are endowed by the values of their shared creator. We believe this co-determination becomes more obvious in the next phases of physical AI/ autonomy for Tesla in the year ahead.”

Musk said, in response to Jonas’ note, that his companies are “surprisingly in some ways, trending toward convergence.”

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Mergers and shared ecosystems between companies are not new moves out of Musk’s playbook, as it has been done in the past, especially with Tesla acquiring other entities.

It did it with SolarCity in 2016 and with Maxwell Technologies in 2019. Investments between Musk companies have occurred before, too, as SpaceX dumped $2 billion into xAI last July.

He’s also said on several occasions that he could eventually bring everything together into some sort of single entity. In July 2024, he said:

“I’m not opposed to the idea in principle, but I’m not sure there is a pragmatic or legal way to merge them. There is also value in equity incentives of people at the companies being tied to that company’s accomplishments.”

This point is especially relevant now with Musk’s recently approved compensation package.

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He also said in June, during an interview with CNBC , that “It’s not out of the question” for xAI to merge with Tesla, but it would have to be approved by shareholders. Just a few days later, he said he would not support xAI merging with Tesla; however, he put it in investors’ hands.

It’s more than just a deal; it’s symbiotic. Musk being at the helm of various companies, all intertwined with one another, helps foster recursive innovation. Despite these advantages, there are still a handful of things to consider, especially from a regulatory perspective.

However, it is not competition; it’s convergence. In Musk’s universe, especially from a business sense, mergers are not endpoints, but instead launchpads for ambitions that aim to take each company from Earth to lands beyond our atmosphere.

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Elon Musk

Tesla makes Elon Musk’s new compensation package official

This is an important thing to note, as much of the media coverage regarding Musk’s pay package seems to indicate that the company and the shareholders are simply giving the CEO the money. He has to come through on each of these tranches to unlock the $1 trillion.

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Credit: @JoeTegtmeyer/X

Tesla has made CEO Elon Musk’s new compensation package official, as it filed a Form 4 with the Securities and Exchange Commission (SEC) on Monday.

The package officially gives Musk the opportunity to acquire over 423 million shares of Tesla stock (NASDAQ: TSLA), dependent on his ability to achieve twelve performance-based tranches that will bring growth to the company and its shareholders.

Tesla (TSLA) shareholders officially approve Elon Musk’s 2025 performance award

Musk’s new compensation package was approved by investors last Thursday at the company’s Annual Shareholder Meeting, as over 75 percent of voters supported the CEO’s new plan, which could be valued at over $1 trillion if he is able to come through on all twelve tranches.

The twelve tranches include growth goals related to vehicle deliveries, the Optimus humanoid robot project, and Tesla’s valuation. If Musk is able to achieve each tranche, he would help Tesla achieve an over $8 trillion market cap.

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The 12 tranches include:

  1. $2 trillion market cap + Deliver 20 million Tesla vehicles cumulatively
  2. $2.5 trillion market cap + Reach 10 million active Full Self-Driving (FSD) subscriptions
  3. $3 trillion market cap + Deliver 1 million Optimus humanoid robots
  4. $3.5 trillion market cap + Operate 1 million Robotaxis commercially
  5. $4 trillion market cap + Hit $50 billion in adjusted EBITDA (earnings before interest, taxes, etc.)
  6. $4.5 trillion market cap + Hit $80 billion in adjusted EBITDA
  7. $5 trillion market cap + Hit $130 billion in adjusted EBITDA
  8. $5.5 trillion market cap + Hit $210 billion in adjusted EBITDA
  9. $6 trillion market cap + Hit $300 billion in adjusted EBITDA
  10. $6.5 trillion market cap + Hit $400 billion in adjusted EBITDA
  11. $7.5 trillion market cap + Hit $400 billion in adjusted EBITDA for four straight quarters in a row
  12. $8.5 trillion market cap + Hit $400 billion in adjusted EBITDA for four straight quarters in a row

Achieving the twelve levels of the new compensation package would also give Musk what he’s really after: a larger ownership share in Tesla, which would help him achieve more control, something he feels is necessary for the rollout of the Optimus robot “army.”

Musk does not earn a dime if he does not achieve any of the tranches above.

This is an important thing to note, as much of the media coverage regarding Musk’s pay package seems to indicate that the company and the shareholders are simply giving the CEO the money. He has to come through on each of these tranches to unlock the $1 trillion.

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