2023 Mercedes EQE SUV may qualify for US federal EV tax credit, official pricing revealed

Mercedes-Benz announced the pricing (finally!) for its electric medium-sized SUV - the EQE SUV. That on its own is news but the really important bit is the fact that Mercedes managed to squeeze out every bit out of the EQE SUV in its entry trim to just push it over the line so it can qualify for the EV tax credit.

Let’s start with the numbers. The entry trim for all the models is called Premium and is available for EQE 350+ SUV, EQE 350 4MATIC SUV and the EQE 500 4MATIC SUV. Both the 350+ and 350 4MATIC are priced at $77,900 before destination charge of $1,150 - in total, the cheapest electric EQE SUV will set you back $79,050.

That’s $950 below the threshold for the $7,500 federal EV tax credit and since the EQE SUV is made in Tuscaloosa, Alabama. Mercedes is awaiting clarification on battery rules from the US government because the battery used in the EQE SUV is made in Bibb County. That technically makes it US-made as per requirements, but the issue is in the origin of some of the raw materials used in the production.

Another interesting bit is the price parity between the 350+ model and the AWD 350 4MATIC. Mercedes claims it has done so to afford the customers better choice - both cars have identical power output of 292 hp, both accelerate from 0 to 60 mph (96 km/h) in just over 6 seconds.

The difference is in the range, and although Mercedes did not provide specifics in its press release, a quick look at our Comparison Tool reveals that, at least in Europe, the 350+ has a 596 km range versus the 538 km achieved by 350 4MATIC. Those numbers will change once EPA tests all the versions of the EQE SUV.

If the EV tax credit is of no importance to you, then your choice is certainly much wider. Starting with the EQE 500 4MATIC SUV at $89,500 in the premium trim, you get 408 hp, 523 km of WLTP range and 0 to 62 mph takes only 4.9 seconds.

If you prefer more range and performance is not that important, you can buy either the 350+ or the 350 4MATIC in Exclusive trim for $81,150. The extra $2,100 buys you AR navigation, active ambient lighting in the cabin and driver assistance package with automatic lane changing function.

Add another $3,500 and you can have either of the EVs in the top trim Pinnacle with multi-zone climate control, air suspension, HUD, and Mercedes logo will be proudly displayed on the ground every time you open the door to remind you, what you spent your money on.

The EQE 500 4MATIC is available in both the Exclusive and Pinnacle trims as well. Those two trims are priced at $91,600 and $95,450 respectively, plus the $1,150 destination charge.

The 350+ and 350 4MATIC in the Exclusive trim are priced rather attractively. Once the battery situation is clarified and Mercedes can qualify for the EV tax credit, the effective price for both models will drop to $71,550.

It isn’t a bargain price but it is attractive and in its segment, the EQE SUV doesn’t have competition. Audi Q8 e-tron prices are estimated to start well above $87,000 and Tesla Model X is a much bigger vehicle. Cadillac Lyriq can be cheaper but it’s bigger, which isn’t always a good thing. Mercedes got its pricing just right and it all now depends on the customers - will they vote with their wallets?

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