Mercedes-Benz plans to reduce electric vehicle prices in the US and temporarily halt some deliveries due to declining demand.

Mercedes-Benz will halt deliveries of its EQ electric models to the U.S. and reduce prices of new EQ vehicles due to declining demand and high dealer inventories. Following a recent spending bill from President Trump that cut EV tax credits sooner than expected, analysts predict the U.S. EV market will underperform this year. During the pause, Mercedes will deplete its EQ stock in the U.S. and supply vehicles from its Tuscaloosa, Alabama plant.

The company will also lower the base prices of its EQE and EQS sedan and SUV models in the U.S. by 4% to 16% starting with the 2026 model year, excluding delivery fees. CEO Ola Kaellenius expressed optimism about future demand for battery electric vehicles (BEVs) in the U.S. during a presentation of the company’s second-quarter results, stating that he believes BEV adoption will gradually increase. In February, Mercedes announced plans to produce more petrol and diesel vehicles than EVs, aiming for 19 new combustion engine models and 17 BEVs by the end of 2027, following a 25% drop in BEV sales last year.