Mercedes-Benz cut prices on most of its electric models in early 2024

In January 2024, Mercedes-Benz reduced prices on several electric vehicles across its lineup, including the EQE sedan, EQE SUV, EQS sedan, and EQS SUV. The cuts ranged from roughly $1,400 to $8,000 depending on the model and trim level. This was part of a broader industry shift: as battery costs stabilized and competition in the EV market intensified, several major automakers lowered their sticker prices to remain competitive.

The price reductions affected both entry-level and higher-trim versions of these vehicles. For example, some EQE models saw cuts in the $1,400 to $2,500 range, while certain EQS variants dropped by larger amounts. Mercedes also adjusted pricing on the EQG, its smaller electric SUV positioned to compete in a lower price segment.

These cuts matter if you were considering a Mercedes electric vehicle, because they changed the actual out-of-pocket cost you would face. However, the timing and size of any discount can vary based on dealer inventory, regional demand, and current incentives — so the price you see today may differ from what was available in early 2024.

Key Takeaways

  • Mercedes-Benz reduced prices on electric models like the EQE and EQS by $1,400 to $8,000 in early 2024, with the largest cuts on higher-trim versions.
  • The price cuts reflected industry-wide pressure as battery costs fell and competition among EV makers increased.
  • Federal tax credits of up to $7,500 may still be available for may have access to Mercedes electric vehicles, depending on where the vehicle was assembled and your income level.
  • Current pricing and available discounts vary by dealer and region, so comparing quotes from multiple dealers can reveal significant differences.
  • Leasing a Mercedes electric vehicle may offer lower monthly payments than purchasing, especially if you want to avoid battery degradation concerns over time.

How the price cuts compared to other EV makers

Mercedes was not alone in cutting EV prices. Tesla had already reduced prices across its lineup in late 2023, and other luxury automakers like BMW and Audi followed with their own adjustments in early 2024. The pattern reflected a shift in the EV market: as production scaled up and battery costs declined, automakers could no longer sustain the premium pricing they had charged when electric vehicles were newer and less common.

For a buyer, this meant the gap between a luxury electric vehicle and a mainstream one narrowed. A Mercedes EQE, after the price cut, was closer in price to vehicles like the Tesla Model S or BMW i7 than it had been before. This made comparing across brands more straightforward, though each vehicle still had different features, range, and charging speeds.

Federal tax credits and what they mean for your actual cost

Even after Mercedes lowered its prices, you may have been able to reduce your cost further through the federal EV tax credit, which allows up to $7,500 off the purchase price of a new electric vehicle. However, not all Mercedes electric vehicles may have access to for the full amount, and some did not may have access to at all.

The credit depends on three things: where the vehicle was assembled, where its battery was sourced, and your household income. Mercedes electric vehicles built in Germany did not may have access to for the credit. Those assembled in the United States — which included some EQE and EQS models — could may have access to if the battery components met sourcing requirements and your income fell below the limits ($300,000 for joint filers, $150,000 for single filers as of 2024).

The credit also phases out as vehicle price increases. If a Mercedes electric vehicle's price exceeded certain thresholds ($55,000 for SUVs, $50,000 for sedans), it became ineligible. After Mercedes cut prices, some models that had previously been above these thresholds moved into range, potentially opening up the credit for buyers who had been excluded before.

Leasing versus buying after the price cuts

Lower purchase prices did not automatically make buying the better choice over leasing. A lease typically means lower monthly payments, no worry about battery degradation, and the ability to drive a new vehicle every few years. A purchase means you own the vehicle outright after paying it off and can keep it as long as you want.

After Mercedes cut prices, the math shifted slightly in favor of buying for some buyers — the lower sticker price meant lower loan amounts and therefore lower monthly payments if you financed. However, leasing still offered advantages if you were concerned about long-term battery health, wanted to avoid maintenance costs, or preferred driving a new car with the latest technology.

The best choice depended on how many miles you drove annually (leases have mileage limits), whether you wanted to customize the vehicle, and how long you planned to keep it. A dealer or financial advisor could run the numbers for your specific situation.

Why battery costs matter to your price

The reason Mercedes and other automakers cut prices in 2024 was largely because battery costs had fallen. Batteries are the most expensive component of an electric vehicle, often accounting for 30 to 40 percent of the total cost. When battery prices drop, automakers can either keep prices the same and increase profit margins, or lower prices to stay competitive. Mercedes chose to lower prices, likely to maintain market share as more EV options became available.

This trend is expected to continue. As battery manufacturing scales up and new technologies emerge, costs are projected to keep declining, which could mean further price reductions in future years. However, this also means that if you bought a Mercedes electric vehicle before the price cut, you paid more than someone who bought the same model after.

Dealer pricing and regional variation

While Mercedes announced price cuts at the corporate level, the actual price you paid depended on your dealer and region. Some dealers offered additional discounts or incentives on top of the manufacturer's price reduction. Others had limited inventory and less motivation to negotiate. Dealer markups — extra charges added on top of the manufacturer's suggested price — also varied widely.

The best approach was to contact multiple dealers and request quotes for the specific model and trim you wanted. Online tools like Edmunds, Kelley Blue Book, and TrueCar showed typical prices in your area, which gave you a benchmark for negotiation. You could also check whether your state or local area offered any additional EV incentives beyond the federal credit.

What changed for used Mercedes electric vehicles

When new vehicle prices drop, used vehicle prices typically follow. If you were considering a used Mercedes electric vehicle from 2022 or 2023, the price cuts on new models put downward pressure on the used market. This was good news if you were buying used, but bad news if you had recently purchased a new one — your vehicle's resale value declined.

Used electric vehicles also carried the question of battery health. A used Mercedes electric vehicle from 2022 had already lost some battery capacity through normal use. Dealers and private sellers sometimes offered battery health reports, which showed the remaining capacity. This information was important because it affected how far the vehicle could travel on a charge and how much degradation you might see over the next few years of ownership.

Frequently Asked Questions

Did the price cuts explore to all Mercedes electric models?

No. The cuts primarily affected the EQE, EQS, and EQG models. Other electric vehicles in the Mercedes lineup, such as the EQC, may not have received the same reductions. You needed to check the specific model you were interested in to see whether a price cut applied.

Can I get the federal tax credit on a used Mercedes electric vehicle?

The federal tax credit for used electric vehicles is different from the new vehicle credit. A used EV credit of up to $4,000 became available in 2024, but it had its own income limits, price caps, and vehicle age requirements. You would need to check whether a specific used Mercedes met those requirements.

If I buy now, will the price drop again soon?

Battery costs and EV prices have been volatile, and further reductions are possible. However, predicting when or by how much is difficult. If you need a vehicle now, the current price is what matters. If you can wait, monitoring prices over the next few months might reveal trends, but there is no may provide of additional cuts.

Do dealer markups erase the benefit of the manufacturer's price cut?

Not necessarily, but they can reduce it significantly. Some dealers added markups of $2,000 to $5,000 or more on top of the manufacturer's price. Shopping around and being willing to travel to a different dealer often revealed options without markups or with smaller ones.

How do Mercedes electric vehicle prices compare to Tesla or BMW after the cuts?

After the price cuts, a Mercedes EQE or EQS was competitive with a Tesla Model S or BMW i7 in terms of base price, though each vehicle offered different features, range, and performance. Comparing specific trim levels and options across brands gave the clearest picture of value.