Mercedes Is Making The Same Profit As The E-Class By Selling The EQE

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In an earnings call this week, Mercedes stated that the EQE, its mid-size electric luxury vehicle, is generating profits that are on par with or greater than those of the E-Class, its internal combustion equivalent. According to Automotive News Europe, sales of the electric model began in Europe in the second quarter of 2022, and the firm is happy with the vehicle's performance. The EQE starts at about $70,849 USD, whereas the E-Class starts at about $50,607.

According to Wilhelm, many EVs do not achieve profit parity because even the Mercedes EQS, a larger, more opulent model, trails its internal combustion competitor.

For automakers, profit is a crucial consideration, but this is true particularly for electric vehicles. Although many businesses have invested billions in the creation of the vehicles, pricey parts like the batteries still make it challenging to manufacture really affordable models.

It is crucial that businesses figure out how to make the finances work since rules are coming that will make EV manufacture in Europe a must. Though not the only German automaker, Mercedes believes it has it all figured out. Porsche's CFO, Lutz Meschke, has stated that the company's EV profit margins will catch up to those of combustion vehicles in two years and may possibly improve after that.

This week, Mercedes announced that it intends to increase the proportion of totally electric vehicles in its sales this year. It anticipates that in the second half of this year, 50 percent of its electrified sales will be totally electric with the aid of the EQE and EQS SUVs.

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