Mercedes-Benz Pushes Into New Tech Territory While Its Share Price Stalls

The Stuttgart automaker is making moves on multiple fronts — locking in a multibillion-dollar battery supply deal, rolling out on-device artificial intelligence, and expanding its electric lineup — yet the market remains unimpressed. Mercedes-Benz shares have shed nearly 19% since the start of the year, trading at roughly €50 and well below the 200-day moving average of €55.80.

A Landmark Battery Agreement in Seoul

On April 20, Mercedes-Benz and Samsung SDI signed a battery supply contract worth approximately $6.8 billion in Seoul, marking the first direct deal of its kind between the two companies. Samsung SDI will deliver high-nickel NCM battery cells starting in 2029, destined for future compact and mid-sized electric SUVs and coupes. The supply volumes are expected to run into the tens of gigawatt-hours, according to industry sources. The partners also agreed to jointly develop next-generation battery technologies.

For Samsung SDI, the agreement represents a strategic milestone: the South Korean group now supplies all three German premium automakers.

The deal is part of a broader effort by Mercedes to rework its supply chain and reduce dependence on individual suppliers. The company is grappling with billions in tariff costs and a sharp sales slump in China. Its "Next Level Performance" efficiency program targets an 8% reduction in material costs by 2027 and cumulative savings of more than €3.5 billion by 2026.

Regional Divergence and Electric Momentum

The first quarter of 2026 laid bare the challenges. Mercedes delivered roughly 419,000 passenger cars worldwide, down 6% year-on-year. In China, sales plunged 27%, which the company attributes to a deliberate model transition, with a recovery expected from 2027. The United States offered a brighter picture, with deliveries up 20%, while Europe posted a 7% gain.

Global EV sales rose 11% in the first quarter to more than 50,400 vehicles, fueled by the new electric CLA. In Europe, battery-electric vehicle sales jumped 34%. Demand has been so strong that the Rastatt plant is running the CLA on three shifts.

AI Goes Local in the Cockpit

On the software side, Mercedes is pushing artificial intelligence directly into its vehicles. A new partnership with Liquid AI aims to upgrade voice control in North America, with the key difference being that the AI runs locally in the car, eliminating the need for a constant cloud connection.

These on-device language models will be integrated into Mercedes' own MB.OS operating system. The first vehicles equipped with the new technology are scheduled to roll off the production line in the second half of 2026. Chief Technology Officer Jörg Burzer expects the system to deliver a significantly more intuitive user experience, with seamless digital controls in the cockpit.

New Models Hit the Road

Alongside the software push, Mercedes is broadening its electric portfolio. In India, the fully electric CLA limousine debuted on Friday, featuring a new 800-volt architecture that delivers up to 792 kilometers of range. The model had already attracted more than 400 pre-orders before its official launch.

Starting in the current second quarter, Mercedes will begin production of the new electric C-Class in Hungary. Investors have yet to reward this product offensive. The stock closed just above €50 on Friday, hovering near its year-to-date low.

Earnings on the Horizon

Mercedes is scheduled to publish its first-quarter interim report on April 29. Management expects full-year group revenue to match the prior year, with an adjusted return on sales in the car division of between three and five percent. The quarterly figures will provide the first concrete indication of whether rising EV demand can offset the margin damage from China's downturn.

Chart watchers see little room for error. The share price remains well below the 200-day line, and if support at the current yearly low gives way, further downside could follow.

Ad

Mercedes-Benz Stock: New Analysis - 26 April

Fresh Mercedes-Benz information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Mercedes-Benz analysis...

Ad

Mercedes Stock: New Analysis - 26 April

Fresh Mercedes information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Mercedes analysis...