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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Elon Musk
Tesla Korea hiring AI Chip Engineers amid push for high-volume AI chips
Tesla Korea stated that it is seeking “talented individuals to join in developing the world’s highest-level mass-produced AI chips.”
In a recent post on X, Tesla Korea announced that it is hiring AI Chip Design Engineers as part of a project aimed at developing what the company describes as the world’s highest-volume AI chips. CEO Elon Musk later amplified the initiative.
Tesla Korea stated that it is seeking “talented individuals to join in developing the world’s highest-level mass-produced AI chips.”
“This project aims to develop AI chip architecture that will achieve the highest production volume in the world in the future,” Tesla Korea wrote in its post on X.
As per Tesla Korea, those who wish to apply for the AI Chip Design Engineer post should email Ai_Chips@Tesla.com and include “the three most challenging technical problems you have solved.”
Elon Musk echoed the hiring push in a separate post. “If you’re in Korea and want to work on chip design, fabrication or AI software, join Tesla!” he wrote.
The recruitment effort in South Korea comes as Tesla accelerates development of its in-house AI chips, which power its Full Self-Driving (FSD) system, Optimus humanoid robot, and data center training infrastructure.
Tesla has been steadily expanding its silicon development teams globally. In recent months, the company has posted roles in Austin and Palo Alto for silicon module process engineers across lithography, etching, and other chip fabrication disciplines, as noted in a Benzinga report.
Tesla Korea’s hiring efforts align with the company’s long-term goal of designing and producing AI chips at massive scale. Musk has previously stated that Tesla’s future AI chips could become the highest-volume AI processors in the world.
The move also comes amid Tesla’s broader expansion into AI initiatives. The company recently committed about $2 billion into xAI as part of a Series E funding round, reinforcing its focus on artificial intelligence across vehicles, robotics, and compute infrastructure.
Elon Musk
SpaceX and xAI tapped by Pentagon for autonomous drone contest
The six-month competition was launched in January and is said to carry a $100 million award.
SpaceX and its AI subsidiary xAI are reportedly competing in a new Pentagon prize challenge focused on autonomous drone swarming technology, as per a report from Bloomberg News.
The six-month competition was launched in January and is said to carry a $100 million award.
Bloomberg reported that SpaceX and xAI are among a select group invited to participate in the Defense Department’s effort to develop advanced drone swarming capabilities. The goal is reportedly to create systems that can translate voice commands into digital instructions and manage fleets of autonomous drones.
Neither SpaceX, xAI, nor the Pentagon’s Defense Innovation Unit has commented on the report, and Reuters said it could not independently verify the details.
The development follows SpaceX’s recent acquisition of xAI, which pushed the valuation of the combined companies to an impressive $1.25 trillion. The reported competition comes as SpaceX prepares for a potential initial public offering later this year.
The Pentagon has been moving to speed up drone deployment and expand domestic manufacturing capacity, while also seeking tools to counter unauthorized drone activity around airports and major public events. Large-scale gatherings scheduled this year, including the FIFA World Cup and America250 celebrations, have heightened focus on aerial security.
The reported challenge aligns with broader Defense Department investments in artificial intelligence. Last year, OpenAI, Google, Anthropic, and xAI secured Pentagon contracts worth up to $200 million each to advance AI capabilities across defense applications.
Elon Musk previously joined AI and robotics researchers in signing a 2015 open letter calling for a ban on offensive autonomous weapons. In recent years, however, Musk has spoken on X about the strengths of drone technologies in combat situations.
News
Doug DeMuro names Tesla Model S the Most Important Car of the last 30 years
In a recent video, the noted reviewer stated that the choice was “not even a question.”
Popular automotive reviewer and YouTuber Doug DeMuro has named the 2012 Tesla Model S as the most important car of the last 30 years.
In a recent video, the noted reviewer stated that the choice was “not even a question,” arguing that the Model S did more to change the trajectory of the auto industry than any other vehicle released since the mid-1990s.
“Unquestionably in my mind, the number one most important car of the last 30 years… it’s not even a question,” DeMuro said. “The 2012 Tesla Model S. There is no doubt that that is the most important car of the last 30 years.”
DeMuro acknowledged that electric vehicle adoption has faced recent headwinds. Still, he maintained that long-term electrification is inevitable.
“If you’re a rational person who’s truthful with yourself, you know that the future is electric… whether it’s 10, 20, 30 years, the future will be electric, and it was the Model S that was the very first car that did that truthfully,” he said.
While earlier EVs like the Nissan Leaf and Chevrolet Volt arrived before the Model S, DeMuro argued that they did not fundamentally shift public perception. The Model S proved that EVs “could be cool, could be fast, could be luxurious, could be for enthusiasts.” It showed that buyers did not have to make major compromises to drive electric.
He also described the Model S as a cultural turning point. Tesla became more than a car company. The brand expanded into Superchargers, home energy products, and a broader tech identity.
DeMuro noted that the Leaf and Volt “made a huge splash and taught us that it was possible.” However, he drew a distinction between being first and bringing a technology into the mainstream.
“It’s rarely about the car that does it first. It’s about the car that brings it into the mainstream,” he said. “The Model S was the car that actually won the game even though the Leaf and Volt scored the first.”
He added that perhaps the Model S’ most surprising achievement was proving that a new American automaker could succeed. For decades, industry observers believed the infrastructure and capital requirements made that nearly impossible.
“For decades, it was generally agreed that there would never be another competitive American car company because the infrastructure and the investment required to start up another American car company as just too challenging… It was just a given basically that you couldn’t do it. And not only did they go it, but they created a cultural icon… That car just truly changed the world,” he said.
Tesla Korea hiring AI Chip Engineers amid push for high-volume AI chips
SpaceX and xAI tapped by Pentagon for autonomous drone contest
