It was intended for the all-electric Mercedes G-Class to be a sort of statement piece, boxy, bold, and able to wade across rivers and perform tank spins. Rather, it has evolved into something more like to a warning story.
You can practically feel it when you walk through a Mercedes store in Stuttgart or Munich: consumers gravitate toward the gas version as if nothing had changed, while the G580 sits there, shining, neglected. Sales are terrible. According to an internal source, it was a “complete flop.” That term lingers.
| Snapshot: The Bifurcating EV Market (2024–2026) | Details |
|---|---|
| Global EV sales projected for 2025 | Over 20 million units, more than 1 in 4 new cars worldwide |
| China’s share of global EV production | More than 70%, with 1.25 million electric cars exported in 2024 |
| Average U.S. EV price (Aug 2025) | $57,245, well above the sub-$50,000 average for gasoline cars |
| Mercedes electric G-Class (G580) price | USD 162,000 — roughly $14,000 more than its gas sibling |
| Mercedes G580 European sales (through April) | Only 1,450 units, vs. 9,700 for the gas version |
| Tesla Cybertruck sales drop in 2025 | Plunged 48%, from 38,965 to 20,237 units |
| Porsche Taycan production change | Sharp cuts after a 49% year-on-year sales drop |
| Ford’s upcoming Universal EV platform | Mid-size electric pickup, target price USD 30,000, launching 2027 |
| EU EV market share (2024) | Down to 13.6%, partly tied to expired subsidies |
| Sub-$30,000 share of U.S. new car sales | Hit a low of just 7.5% last November |
The peculiar thing is that this isn’t actually a Mercedes issue. Following a sharp decline in sales, Porsche has drastically reduced Taycan output. When its Belgian plant closed in February, Audi silently discontinued the Q8 e-tron. Before the first EV has even been delivered, Ferrari delayed the release of its second one until 2028. The first electrified vehicle from Bentley keeps sliding. The luxury electric fantasy doesn’t seem to be dying loudly as all of this is happening. Simply said, it is gradually losing its audience, model by model.
There is no mystery to the math underlying the disappointment. To provide the same level of performance as their gas-powered counterparts, luxury EVs require massive battery packs, which drive up the sticker price in ways that buyers no longer seem to be ready to accept. The G580 has a range of 239 miles and costs USD 162,000. The less expensive gas G-Wagen has a 500 horsepower. In any economy, it is difficult to make the trade-off between paying more and getting less.
In contrast, BYD is shipping electric vehicles with most of the same fundamental technology as a Porsche for less than $25,000. The industry has been shaken by that aspect. For the first time, spending more does not ensure a superior product, as stated by Dale Harrow of the Royal College of Art. Top-down innovation—flagship first, trickle-down later—was the foundation around which legacy brands established their whole identity. According to that hypothesis, the flagship is significantly superior. It’s frequently not in an EV.
As a result, the market silently divides in two. On the one hand, ultra-luxury EVs continue to exist as status symbols, purchased by consumers who don’t give a damn about value for money. However, the real job of broad acceptance is being done by commuters that cost less than $30,000 from Chinese manufacturers, and soon, ideally, from Ford’s new Universal EV platform. The center, which used to be a comfortable place for mid-range luxury cars, is disappearing. In the US, used Taycans are available for less than $50,000. They may not even be accepted as trade-ins by some dealers. It’s not a soft market. That is a decline in self-assurance.
The historical similarity is difficult to ignore. Luxury coaches prevented the automobile industry from becoming popular a century ago. The Model T—cheap, simple, and accessible—was the reason it became popular. Years ago, Tesla encountered skepticism and used scale to address it. Ford is now staking a whole Kentucky facility and $30,000 on the notion that history rhymes. It’s still uncertain if that wager will be successful. The industry’s center of gravity has clearly moved downstairs, toward the bottom level, where the majority of buyers reside.
All of this has a tension that hasn’t been entirely addressed. Ford is projecting a USD 3 billion loss in its Model e division this year, despite the fact that automakers are aware that affordability is the way forward. In FY2025, Tesla’s net income decreased by almost 47%. Investors appear to think that the margin issue will eventually be resolved by size, and perhaps it will. However, the journey from here to there passes through uncomfortable quarters, flagships that have been decommissioned, and a gradual farewell to the notion that the trail warrior will rule the future of automobiles. Instead, it is the commuter’s property. Quiet, inexpensive, and unperturbed. I’m already connected.
