Mercedes-Benz starts production of its first electric SUV in the US

Mercedes-Benz has officially started production of its EQS all-electric SUV at its manufacturing facility in Tuscaloosa, Alabama, the company announced today. Earlier this year, the German automaker previewed the vehicle – its first-ever electric SUV – and promised it would be built in the US and available later this fall. While supply chain bottlenecks have delayed the launch of other new electric vehicles, Mercedes has a few factors in its favor. The company secured its battery materials through a partnership with the Canadian government earlier this month. It also plans to produce its batteries locally at its own factory in nearby Bibb County, Alabama.

Our preview of the EQS SUV noted that its battery range is just over 300 miles. The automaker has yet to disclose the price of the car, which how electr determines whether or not the SUV is eligible for a 2023 EV tax credit. Currently, new SUVs in North America must be assembled and priced under $80,000 to qualify for next year’s tax credit. Given that Mercedes’ EQS sedan started at just over $103,000, it’s probably safe to say that the price of its new electric SUV will beat that — and not qualify for tax refunds. It seems like EQS SUV drivers will have to settle for saving money on fuel mileage.

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