Mercedes-Benz announced today that production of its all-electric EQS SUV has begun at the company’s Tuscaloosa, Alabama plant. The German automaker previewed the vehicle — its first electric SUV — earlier this year, promising that it would be built in the United States and available later this fall.
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While other new EV launches have been delayed due to supply chain issues, Mercedes has a couple of things going for it.
This month, the company secured its battery materials by partnering with the Canadian government. It also intends to manufacture its batteries in Bibb County, Alabama, at its own factory.
The EQS SUV’s battery range is slightly more than 300 miles, according to our preview. The automaker has yet to reveal the vehicle’s price, which, as Electrek points out, will determine whether the SUV is eligible for a 2023 EV tax credit.
To qualify for next year’s tax credit, new SUVs must be assembled in North America and priced under $80,000.
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Given that Mercedes’ EQS sedan starts at just over $103,000, it’s safe to assume that the price of its new electric SUV will be higher — and will not be eligible for any tax breaks. It appears that EQS SUV owners will have to settle for lower fuel economy.
