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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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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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Tesla pushes crazy ‘Luxe’ incentive package on flagship Model S and X

Tesla is pushing more customers to the Model S and Model X with a new incentive package.

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Credit: Tesla

Tesla has pushed a crazy new incentive package, known as the “Luxe Package,” on the flagship Model S and Model X, along with a $10,000 price increase on each trim level.

The move aims to likely bolster margins for the company on the two cars while also giving those who choose to buy the Tesla lineup mainstays a variety of awesome advantages, including Free Supercharging, Full Self-Driving, and other add-ons.

Tesla is offering a crazy Supercharging incentive on its two ‘sentimental’ vehicles

Last night, Tesla launched the “Luxe Package” for the Model S and Model X, which includes the following four add-ons:

  • Full Self-Driving (Supervised) – Your car will be able to drive itself almost anywhere with minimal driver intervention
  • Four-Year Premium Service – Wheel and Tire Protection, Windshield Protection, and Recommended Maintenance
  • Supercharging – Charge for free at 70,000+ Superchargers worldwide
  • Premium Connectivity – Listen to music, stream movies, monitor live traffic, and more – no Wi-Fi needed

Full Self-Driving is priced at $8,000. Free Supercharging for the life of the car is between $10,000 and $15,000 over the life of the vehicle, although Tesla has valued it at $5,000 in recent promotions.

Free Premium Connectivity is roughly $1,000, and the four-year tire, wheel, windshield, and maintenance plan is about $3,200.

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In all, the value is over $25,000, but this is loosely based on usage.

The Model S and Model X are low contributors to Tesla’s overall sales figures, as they make up less than five percent of sales from a quarterly perspective and have for some time.

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As they are certainly the luxury choices in Tesla’s lineup, the Model 3 and Model Y are the bigger focus for the company, as a significantly larger portion of the company’s sales is made up of those vehicles.

The Luxe Package is an especially good idea for those who drive high-mileage and plan to use the Model S or Model X for commuting or long drives. The free Supercharging makes the deal worth it on its own.

As for the price bumps, each of the vehicles are now priced as follows:

  • Model S All-Wheel-Drive: $94,990
  • Model S Plaid: $109,990
  • Model X All-Wheel-Drive: $99,990
  • Model X Plaid: $114,990
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Tesla Roadster could have a formidable competitor with BYD’s 3000-HP supercar

The Roadster is one of the most anticipated vehicles of all time, especially because we’ve all had to wait so long for it. On its own, it will have a 1.9-second 0-60 MPH acceleration rate, which is projected to be better than the 2.3 seconds the U9 Track Edition will offer.

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The Tesla Roadster is on the way, and yes, we know we’ve heard that for quite a few years. But when it comes, it might have a formidable competitor, and it might come from no one other than Chinese rival BYD.

BYD’s Yangwang U9 Track Edition is a new configuration of the U9 supercar that hit the Chinese Ministry of Information Technology (MIIT) database recently.

The vehicle was first spotted on the MIIT database by CarNewsChinaIt will have a quad-motor powertrain, each dedicated to one wheel. Instead of the 1,287 horsepower that comes with the standard U9 configuration, the Track Edition will have 2,977.

There are only two cars that even come close in terms of horsepower: the Lotus Evija with 1,972 and the Rimac Nevera at 1,914 horsepower. The Tesla Roadster is expected to have somewhere around 1,000 horsepower.

The Roadster is one of the most anticipated vehicles of all time, especially because we’ve all had to wait so long for it. On its own, it will have a 1.9-second 0-60 MPH acceleration rate (without the SpaceX package, which brings the projection to 1.1 seconds), which is projected to be better than the 2.3 seconds the U9 Track Edition will offer.

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The Roadster also beats the U9 Track Edition in projected top speed and range. The Roadster could top out at over 250 MPH, compared to the 217 conservative projection for the U9 Track Edition.

Range on the Roadster is 620 miles, beating 280 miles for the BYD.

The U9 Track Edition will also have some additional features compared to its base model. These include some aerodynamic additions, like a carbon fiber rear wing, diffuser, and an adjustable front splitter and adjustable rear wing.

The latter two are optional, but if you have enough scratch to drop on this car, you’re probably adding those two features as well.

We hope that both the Roadster and U9 Track Edition will hit a drag strip, road course, or even a superspeedway for some racing. It would truly be something for EV fans to drool over.

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Tesla is breaking even its own rules to cap off an intense Q3

Tesla is pulling out all the stops to have a strong Q3 as the EV tax credit will phase out.

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Credit: MarcoRP | X

Tesla is breaking its own rules by advertising on various platforms in an effort to sell as many cars as possible before the end of the $7,500 electric vehicle tax credit.

Tesla has had a very polarizing perspective on advertising. Over the years, it has taken on different attitudes toward spending any money on marketing. It has instead put those dollars into research and development to make its vehicles more advanced.

Back in 2019, Tesla CEO Elon Musk talked about the company advertising its vehicles and energy products:

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In 2021, in response to analyst Gary Black, who has pushed for Tesla to have a PR or marketing department, Musk said:

However, this did not hold as Tesla’s strategy for the long haul. While Musk did resist advertising for a long time, Tesla started placing ads on platforms like X, Google, and YouTube several years back. It’s pretty rare that Tesla pushes these ads, however.

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Tesla launches advertising on X in the U.S., expanding ‘small scale’ strategy outlined by Musk

The company’s stance on setting aside capital for advertising seems to be circumstantial. Right now, it is working to sell as many vehicles as it can before the tax credit comes to a close.

As a result, it is pushing some ads on YouTube:

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It’s a move that makes sense considering the timing. With just six weeks roughly left in the quarter, Tesla is going to work tirelessly to push as many cars into customer hands as possible. It will use every ounce of effort to get its products on people’s screens.

Tesla counters jab at lack of advertising with perfect response

Throw in one of the many incentives it is offering currently, and there will surely be some takers.

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