Mercedes-Benz Stock Clings to Annual Low as EU Moves to Close Hybrid Tariff Loophole
20.06.2026 - 15:33:21 | boerse-global.de
The European Commission has readied an investigation into plug-in hybrid vehicles imported from China, according to a report in Handelsblatt, with a view to slapping additional duties on models from BYD, Chery and SAIC’s MG brand. Since last year, Brussels has levied compensatory tariffs on subsidised battery-electric cars from China, but hybrids have so far escaped. That gap has been heavily exploited: Chinese manufacturers have been funnelling more hybrid exports into Europe to dodge the existing charges.
For Mercedes-Benz, which has seen its shares slide to within touching distance of a 52-week trough, the prospect of a more level playing field offers some regulatory comfort – even if the practical impact remains uncertain. A concrete tariff rate and timing have yet to be determined, and the measures would require a majority vote from EU member states.
Stock hovering near the floor
The stock closed last Friday at €45.09, just 2.49% above the year’s nadir of €43.99 set on 18 June. Since the start of 2026, the equity has lost 26.87% of its value. The relative strength index reads 32.5, signalling an oversold condition, though technicians caution that such readings alone do not constitute a buy signal. The price sits well below both the 50-day moving average and the 200-day moving average; a meaningful recovery would require a reclaim of the 50-day line at €49.98.
The chart pattern remains brittle. A decisive break below the €43.99 support could accelerate selling pressure, leaving the stock exposed to further downside.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
Operations under pressure at home and abroad
Mercedes-Benz confirmed its full-year outlook earlier, forecasting broadly flat revenue in 2026 and a sharp increase in EBIT compared with the prior year, largely because last year’s restructuring costs will not recur. But the first-quarter numbers already betray the strain. Revenue came in at €31.6 billion, EBIT at €1.9 billion, and net profit slipped to €1.4 billion from €1.7 billion in the year-ago period.
The car division posted an adjusted return on sales of 4.1%, landing squarely inside Mercedes’ own target band. Global sales reached around 419,400 vehicles. In Europe, the company saw a 34% jump in electric-car registrations, a bright spot. In China, however, an intense price war and muted consumer demand continue to weigh on the premium strategy that underpins Mercedes’ profitability.
Chinese rivals – both pure-EV and now plug-in hybrid players – have steadily eroded the Stuttgart-based group’s market share on the continent. Closing the hybrid loophole would not erase that competitive pressure, but it could recalibrate the terms of battle.
Mercedes-Benz at a turning point? This analysis reveals what investors need to know now.
Key dates ahead
The coming week is packed with macroeconomic signals that could sway sentiment. On Monday, the ACEA will release European new-car registration data for May. The following day, the Ifo business climate index for Germany is due, alongside the EU consumer confidence reading. Weak prints in any of these would typically sap demand for high-end automobiles as buyers postpone big-ticket purchases.
Also on Tuesday, Mercedes-Benz management is scheduled to address an investor conference in Baden-Baden, providing a chance to talk up the medium-term trajectory. The next major corporate milestone comes on 28 July, when the group publishes its second-quarter interim report. Until then, traders will watch how the stock behaves around the €43.99 floor, with the EU tariff story offering a faint but potentially pivotal narrative thread.
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