Luxury electric vehicles (EVs) have something of a problem right now, and it’s probable only future technologies will resolve it. In theory, buying a luxury EV should be a win-win: Not only are you riding around town in something that radiates elegance and class, but you’re also doing it in a way that’s environmentally friendly. Unfortunately, it may come at a price, but not the typical luxury price you expect.
Currently, luxury EVs can suffer from a wide array of problems, and it’s not just the initial cost. Battery issues, fast depreciating values, high maintenance costs, and ever-evolving vehicle technology are just a few issues in the industry. And that’s before considering general issues EVs experience, such as limitations with charging stations. A good example is the 2025 Mercedes-AMG EQS, which only has a 7.5-out-of-10 rating on Car and Driver and starting price of $148,700. While some issues can be excusable –- especially in emerging tech -– it’s not so forgivable when the product is specifically meant to be high-end.
When the price of a vehicle starts venturing into six figures, the demand and necessity for the vehicle to be top-of-the-line only increases. While manufacturers are working diligently to improve the specific tech in luxury EVs, especially in regards to batteries, this can actually create more problems for the current luxury EV market.
The problem with luxury electric vehicles
Luxury EVs share many of the same issues with current electric-RVs (eRVs): larger vehicles with extra amenities require even larger batteries over a typical electric vehicle. Much like eRVs, the battery for a luxury EV needs to compensate for the increased performance of the vehicle, while powering the additional features and options as well. However, by making a battery larger, this increases the weight of the vehicle, putting further strain on the battery. It’s why some engineers are working on structural batteries that can help reduce vehicle weight.
So, not only are consumers paying a premium for a luxury vehicle, they’re also paying more for a battery that can actually support the high-end functions of one. While some individuals may have no qualms about paying a higher cost for a vehicle that’s going to be more environmentally friendly, it’s fair to expect that you get a vehicle worth the price.
Let’s look at the 2025 Mercedes-AMG EQS as an example. While critics praise the vehicle for its accelerations and fantastic suspension, the vehicle also receives low ratings for its handling and overly dominant front passenger screen. There’s also the fact that the EQS has a range of around 315 miles, which is merely average for an EV. Considering its MSRP hovers in the $150,000 range, one should definitely consider the vehicle’s drawbacks, as that kind of money can get you a lot further elsewhere.
(Not) going the distance
Another issue luxury EVs face is they depreciate in value faster over similarly priced gas vehicles. Gas-powered luxury vehicles already suffer from depreciation over more frugal offerings, with luxury cars losing 50% of their value in three years versus a mainstream vehicle’s 30%-35% depreciation. This is due to a variety of factors, including the tech in the vehicles becoming obsolete, potential mileage and condition of the vehicle, and new luxury vehicle launches.
This problem increases when you throw a lithium-ion battery into the equation. Since lithium-ion degrades over time, any EV is going to lose range and battery life, and with current tech, it will likely be noticeable in the vehicle in just a few years. So, not only is a luxury EV quickly losing value due to advancing tech, but the threat of expensive battery replacements and virtually guaranteed depreciation is worsening matters.
Though Huawei is working on an EV battery that promises to last 1,800 miles on a five-minute charge, the current crop of lithium-ion batteries simply aren’t helping the luxury EV market. These problems are only enhanced when you factor in the additional problems a typical EV already has, such as initial price, limited charging networks, and charging reliability.
