Mercedes-Benz Rolls Out GLC EV in China and Wraps Up €2bn Buyback, But EU Regulation and Profit Squeeze Loom

Mercedes-Benz has completed a €2 billion share repurchase programme and opened order books for its fully electric GLC in China, yet the stock remains under relentless pressure as a short-lived bounce fades. The shares touched a fresh 52-week low of €47.17 on Monday before clawing back to €48.20, only marginally above the prior trough of €47.66 recorded the week before. That left the stock down nearly 7% on a weekly basis and nursing a year-to-date loss of 21.82%.

The sell-off reflects a toxic mix of structural headwinds. New research from EY shows the combined operating profit of Germany’s carmakers shrank by 23% in the first quarter of 2026, with revenues falling 4%. Mercedes-Benz has been hit particularly hard by weakening demand in its top-end passenger car division and the heavy capital expenditure required for the electric transition. Margins across the 19 largest global auto groups have slid to 3.5%, the lowest level since 2020. EY’s Constantin M. Gall described the outlook as another “crisis year” for the industry.

Compounding the domestic gloom, the European Union’s Council of Ministers is deliberating on the Clean Corporate Vehicles Regulation, a proposal that would mandate zero-emission company cars for large fleets by 2030 and restrict state subsidies to pure electrics from as early as 2028. The German automotive association VDA has pushed back, with president Hildegard Müller pointing to inadequate charging infrastructure and high electricity costs that undermine the logic of forcing the switch.

Should investors sell immediately? Or is it worth buying Mercedes-Benz?

In an attempt to arrest the slide, Mercedes-Benz has opened orders for the electric GLC in China, its most important market. Priced at around €44,500, the SUV uses an 800-volt architecture for ultra-fast charging and features the brand’s signature 39.1-inch MBUX Hyperscreen. The model is a direct challenge to locally made rivals such as Nio and BYD, which offer cheaper alternatives. Mercedes hopes the premium positioning and technological edge will protect its margins against the onslaught of domestic competition.

Meanwhile, the company has wrapped up a buyback programme that ran between November 2025 and June 2026, repurchasing roughly 37.6 million shares at an average price of €53.19. The move bolsters earnings per share but has done little to alter the bearish technical picture: the stock trades 13% below its 200-day moving average and the trend remains firmly downward, with the relative strength index at 35.5 flirting with oversold territory.

On the brighter side, Mercedes-Benz can point to a few green shoots closer to home. The GLC EQ doubled its German new registrations to 604 units in the latest month, while the CLA EQ remained the best-selling electric model with 1,647 units. And on the racetrack, the Mercedes-AMG Petronas team celebrated a fifth consecutive victory for 19-year-old Kimi Antonelli at the Monaco Grand Prix, extending its lead in the drivers’ championship. But for shareholders, the real race is whether the GLC EV can deliver the volumes and margins needed to hit the 2026 profitability target – or whether Brussels will tighten the screws even further.

Ad

Mercedes-Benz Stock: New Analysis - 8 June

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...

en | DE0007100000 | MERCEDES-BENZ | boerse | 69502422 |