• Mercedes-Benz says it has paused orders of its electric vehicles in the US.
• Mercedes cited "market conditions" for the decision.
• A Mercedes-Benz representative said he thinks demand for EVs will pick back up in the future.

Mercedes-Benz says it is pausing orders for its electric vehicles as demand wanes among American drivers.

A spokesperson for the German automotive company told Business Insider the decision affects all variants of the EQS Sedan, EQS SUV, EQE Sedan, and the EQE SUV. Vehicles that were scheduled for production before September 1 will still be delivered.

"As a company with global activities and more than 30 plants worldwide, including in Alabama and South Carolina, Mercedes-Benz continuously optimizes its production network and uses its high flexibility to react quickly to market conditions," the spokesperson said. "We continue to assemble all of our models meant for export to global markets, as well as adapt to meet local market demand."

The spokesperson said it cannot say when US order banks for EQ models will reopen "for competitive reasons."

In its Q2 earnings report on Wednesday, Mercedes-Benz said the total unit sales for its battery electric vehicles (BEV) had slipped by almost 25% compared to the same time last year: 45,843 units to 35,027 units.

In 2022, Mercedes-Benz began manufacturing two all-electric vehicle models — the EQS SUV and EQE SUV — at its Alabama plant. In 2023, it also added the Mercedes-Maybach EQS SUV.

The company's decision to pause orders comes after President Donald Trump's spending bill, which he signed into law this month, eliminated the $7,500 tax credit for new electric vehicles. Industry experts previously warned that axing the tax incentive could make EVs unaffordable, affecting companies like Tesla, Cadillac, and Chevrolet. The tax incentive will end on September 30.

EV sales in North America rose just 5% in the first four months of 2024, compared to 25% in Europe and 35% in China, according to EV research firm Rho Motion.

During Wednesday's earnings call, a Mercedes-Benz Group representative said he thinks American interest in electric vehicles will rebound over time.

"In spite of the announcement that they would take the 7,500 credit away, we don't believe that the BEV demand in the United States goes to zero," he said. "We still think that the medium to long-term adoption rate of BEVs in the US will creep upward. Maybe it will creep upward slower than if the previous regulatory trajectory had been kept in place, but nevertheless, we believe in the mid to long term it will creep upward."

I like to drive without the distractions of my work life interrupting me, but if you’re eager to stay connected then Mercedes-Benz is ready. You’ll soon be able to join a Microsoft Teams call in some Mercedes‑Benz vehicles and use the in-car camera to chat with colleagues while you’re driving.

Mercedes‑Benz is the first car maker to enable in-car camera use for Microsoft Teams while a car is being driven, but there are some important safety caveats. While you can share a video stream of yourself merrily driving along, you won’t be able to see any shared screens or slides while you’re in motion.

Usually video meeting apps like Teams, Zoom, or WebEx only work while a car is stationary, so this Mercedes‑Benz functionality is clearly designed primarily for that colleague — you know the one — who always has to let everyone know they’re working no matter what.

The meeting video stream will be automatically turned off as soon as the in-car camera is enabled, but other meeting participants will still see your camera feed while you’re driving — so don’t forget it’s on if you get the urge to rummage around your nostrils. The in-car camera support for Microsoft Teams will arrive first on the new CLA, and it’s part of several “productivity enhancements” that Mercedes‑Benz is making this summer.

Microsoft and Mercedes‑Benz are also working together to integrate Microsoft 365 Copilot into “the latest vehicles,” which would be a first of its kind in a car. The experience will be driven by voice prompts, allowing drivers to summarize emails, manage daily tasks, and more.

Mercedes‑Benz gleefully describes this as having “the potential to transform the vehicle into a third workspace, complementing the office and the home office.” I don’t know about you, but I already have enough workplaces, thanks to smartphones and laptops, and I have zero desire to work while I’m driving.

Mercedes‑Benz only mentions the all-new CLA for this new Teams app, but given the latest E-Class models have a selfie camera for apps like TikTok and Zoom, it’s likely we’ll see this functionality show up on other MB.OS-powered vehicles.

As exciting as it is to see how electric technology redefines automotive transportation, it's just as exciting to see how it alters what we already have. In the aftermarket, EV-converted restomods are quickly becoming big business. But direct from manufacturers, there's great potential in electrifying legacy badges by seamlessly blending old design with new technology.

Case in point is the 2025 Mercedes-Benz G580 with EQ Technology, better known as the EV Geländewagen (which is German for all-terrain vehicle), or G-Wagen. Starting at $162,650, the G580 stays true to its original design formula but also utilizes EV technology to bolster its …

Read the full story at The Verge.