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.”
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.
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).
Mercedes-Benz to launch Level 3 automated driving tech in the US by Q4
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Tesla China delivery centers look packed as 2025 comes to a close
Needless to say, it appears that Tesla China seems intent on ending 2025 on a strong note.
Tesla’s delivery centers in China seem to be absolutely packed as the final days of 2025 wind down, with photos on social media showing delivery locations being filled wall-to-wall with vehicles waiting for their new owners.
Needless to say, it appears that Tesla China seems intent on ending 2025 on a strong note.
Full delivery center hints at year-end demand surge
A recent image from a Chinese delivery center posted by industry watcher @Tslachan on X revealed rows upon rows of freshly prepared Model Y and Model 3 units, some of which were adorned with red bows and teddy bears. Some customers also seem to be looking over their vehicles with Tesla delivery staff.
The images hint at a strong year-end push to clear inventory and deliver as many vehicles as possible. Interestingly enough, several Model Y L vehicles could be seen in the photos, hinting at the demand for the extended wheelbase-six seat variant of the best-selling all-electric crossover.
Strong demand in China
Consumer demand for the Model Y and Model 3 in China seems to be quite notable. This could be inferred from the estimated delivery dates for the Model 3 and Model Y, which have been extended to February 2026 for several variants. Apart from this, the Model Y and Model 3 also continue to rank well in China’s premium EV segment.
From January to November alone, the Model Y took China’s number one spot in the RMB 200,000-RMB 300,000 segment for electric vehicles, selling 359,463 units. The Model 3 sedan took third place, selling 172,392. This is quite impressive considering that both the Model Y and Model 3 are still priced at a premium compared to some of their rivals, such as the Xiaomi SU7 and YU7.
With delivery centers in December being quite busy, it does seem like Tesla China will end the year on a strong note once more.
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Tesla Giga Berlin draws “red line” over IG Metall union’s 35-hour week demands
Factory manager André Thierig has drawn a “red line” against reducing Giga Berlin’s workweek to 35 hours, while highlighting that Tesla has actually increased its workers’ salaries more substantially than other carmakers in the country.
Tesla Giga Berlin has found itself in a new labor dispute in Germany, where union IG Metall is pushing for adoption of a collective agreement to boost wages and implement changes, such as a 35-hour workweek.
In a comment, Giga Berlin manager André Thierig drew a “red line” against reducing Giga Berlin’s workweek to 35 hours, while highlighting that Tesla has actually increased its workers’ salaries more substantially than other carmakers in the country.
Tesla factory manager’s “red line”
Tesla Germany is expected to hold a works council election in 2026, which André Thierig considers very important. As per the Giga Berlin plant manager, Giga Berlin’s plant expansion plans might be put on hold if the election favors the union. He also spoke against some of the changes that IG Metall is seeking to implement in the factory, like a 35-hour week, as noted in an rbb24 report.
“The discussion about a 35-hour week is a red line for me. We will not cross it,” Theirig said.
“(The election) will determine whether we can continue our successful path in the future in an independent, flexible, and unbureaucratic manner. Personally, I cannot imagine that the decision-makers in the USA will continue to push ahead with the factory expansion if the election results favor IG Metall.”
Giga Berlin’s wage increase
IG Metall district manager Jan Otto told the German news agency DPA that without a collective agreement, Tesla’s wages remain significantly below levels at other German car factories. He noted the company excuses this by referencing its lowest pay grade, but added: “The two lowest pay grades are not even used in car factories.”
In response, Tesla noted that it has raised the wages of Gigafactory Berlin’s workers more than their German competitors. Thierig noted that with a collective agreement, Giga Berlin’s workers would have seen a 2% wage increase this year. But thanks to Tesla not being unionized, Gigafactory Berlin workers were able to receive a 4% increase, as noted in a CarUp report.
“There was a wage increase of 2% this year in the current collective agreement. Because we are in a different economic situation than the industry as a whole, we were able to double the wages – by 4%. Since production started, this corresponds to a wage increase of more than 25% in less than four years,” Thierig stated.
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Tesla is seeing a lot of momentum from young Koreans in their 20s-30s: report
From January to November, young buyers purchased over 21,000 Teslas, putting it far ahead of fellow imported rivals like BMW and Mercedes-Benz.
Tesla has captured the hearts of South Korea’s 20s-30s demographic, emerging as the group’s top-selling imported car brand in 2025. From January to November, young buyers purchased over 21,000 Teslas, putting it far ahead of fellow imported rivals like BMW and Mercedes-Benz.
Industry experts cited by The Economist attributed this “Tesla frenzy” to fandom culture, where buyers prioritize the brand over traditional car attributes, similar to snapping up the latest iPhone.
Model Y dominates among young buyers
Data from the Korea Imported Automobile Association showed that Tesla sold 21,757 vehicles to the 20s-30s demographic through November, compared to BMW’s 13,666 and Mercedes-Benz’s 6,983. The Model Y led the list overwhelmingly, with variants like the standard and Long Range models topping purchases for both young men and women.
Young men bought around 16,000 Teslas, mostly Model Y (over 15,000 units), followed by Model 3. Young women followed a similar pattern, favoring Model Y (3,888 units) and Model 3 (1,083 units). The Cybertruck saw minimal sales in this group.
The Model Y’s appeal lies in its family-friendly SUV design, 400-500 km range, quick acceleration, and spacious cargo, which is ideal for commuting and leisure. The Model 3, on the other hand, serves as an accessible entry point with lower pricing, which is valuable considering the country’s EV subsidies.
The Tesla boom
Experts described Tesla’s popularity as “fandom culture,” where young buyers embrace the brand despite criticisms from skeptics. Professor Lee Ho-geun called Tesla a “typical early adopter brand,” comparing purchases to iPhones.
Professor Kim Pil-soo noted that young people view Tesla more as a gadget than a car, and they are likely drawn by marketing, subsidies, and perceived value. They also tend to overlook news of numerous recalls, which are mostly over-the-air software updates, and controversies tied to the company.
Tesla’s position as Korea’s top import for 2025 seems secured. As noted by the publication, Tesla’s December sales figures have not been reported yet, but market analysts have suggested that Tesla has all but secured the top spot among the country’s imported cars this year.
Tesla China delivery centers look packed as 2025 comes to a close
Tesla Giga Berlin draws “red line” over IG Metall union’s 35-hour week demands
