Mercedes-Benz Is Paying Electric Car Owners To Abandon Their Brand

Luxury automaker Mercedes-Benz is offering electric vehicle owners an incentive to switch brands and purchase an electric vehicle with a three-pointed star reportsCars Direct.

Based on incentive bulletins seen by the publication, the German brand is offering an incentive bonus on MY 2023 electric vehicles. TheEQS Sedanand SUV are privy to the most significant discounts, with $2,500 off the MSRP. Those purchasing a new EQE Sedan can look forward to a $1,000 price reduction, while the smaller EQB SUV receives a $500 price cut. Strangely, Mercedes hasn't advertised these incentives.

Mercedes is also running an "EQ Conquest Program," worth $1,500. The idea is simple. Potential customers must prove they own an EV or plug-in hybrid vehicle from a rival brand. If, for example, a Model S driver finds themselves enamored by the EQS Sedan, they could save up to $4,000 off the purchase price.

With a starting price of $102,310, one could potentially purchase a brand-new EQS 450+ for $98,310. The more affordableEQB(priced from $54,500) can be picked up for $52,500. That makes the electric SUV a more affordable prospect than the Tesla Model Y, which recentlyreceived a hefty price reduction, followed byanother increase just days later.

Tesla's highly-publicized price reduction likely pushed Mercedes-Benz to offer these discounts. Even before the Texas-based automaker reduced prices across the board, Tesla enjoyed strong sales and growing popularity across the board. With a lower entry point, more people can afford the automaker's vehicles, notably the Model 3 and Model Y.

In response, legacy automakers like Ford have also lowered Mustang Mach-Eprices to remain competitive. Newcomer VinFast has also had to take action,launching a series of discounts and incentivesto fend off Tesla's attack.