{"id":68269,"date":"2025-08-18T08:18:06","date_gmt":"2025-08-18T12:18:06","guid":{"rendered":"https:\/\/www.globalvillagespace.com\/tech\/are-electric-cars-really-dead-in-america-or-just-hitting-pause\/"},"modified":"2025-08-18T08:18:06","modified_gmt":"2025-08-18T12:18:06","slug":"are-electric-cars-really-dead-in-america-or-just-hitting-pause","status":"publish","type":"post","link":"https:\/\/www.globalvillagespace.com\/tech\/are-electric-cars-really-dead-in-america-or-just-hitting-pause\/","title":{"rendered":"Are Electric Cars Really Dead in America or Just Hitting Pause"},"content":{"rendered":"

Are Electric Vehicles Really Dead in the US? Here\u2019s What\u2019s Actually Happening<\/p>\n

Why Did US Electric Vehicle Incentives Disappear, and What Does That Mean for Buyers?<\/p>\n

If you\u2019ve been following the electric vehicle (EV) scene in the US, you\u2019ve probably noticed a big shift. Not long ago, the government was all-in on EVs\u2014offering generous purchase incentives and pushing carmakers to improve fuel efficiency. But with the Trump administration rolling back these policies, the landscape looks very different.<\/p>\n

The $7,500 federal tax credit for new electric cars is ending, and fuel economy mandates have been relaxed. For buyers, this means fewer discounts at the dealership and less pressure on automakers to prioritize EVs over traditional gas-powered vehicles. The immediate effect? EVs are now more expensive compared to their gas counterparts. According to Kelley Blue Book, the average EV transaction price in May was $57,734, while the average for all new cars was $48,799.<\/p>\n

But does this policy reversal spell the end for electric vehicles in America? Not quite. Let\u2019s dig into what\u2019s really going on.<\/p>\n

Are Automakers Giving Up on EVs?<\/p>\n

It\u2019s tempting to think that carmakers are throwing in the towel on EVs. General Motors, for example, recently told investors it expects fewer EV sellers in the next few years and is investing heavily in its traditional internal combustion engine (ICE) lineup. Ford, GM, and Stellantis are all shifting focus back to their bread-and-butter: big pickups and SUVs.<\/p>\n

Stellantis even brought back the Hemi V8 engine for its Ram pickup, while delaying its electric and range-extender models to 2026 and beyond. Honda and Nissan have also scrapped several planned electric models for the US market.<\/p>\n

But here\u2019s the nuance: this isn\u2019t a total retreat. It\u2019s more of a strategic pause. Automakers are recalibrating, not abandoning the EV race. They\u2019re watching the market, waiting for costs to come down, and keeping an eye on what\u2019s happening overseas.<\/p>\n

How Does the US Compare to Europe and China on EV Adoption?<\/p>\n

If you look at the numbers, the US is lagging behind. In June, EVs made up just 8.6% of new car sales in the US, down slightly from last year. In contrast, Europe\u2019s EV market share hit 16% in the first half of the year, according to the European Automobile Manufacturers\u2019 Association (ACEA). China\u2019s numbers are even higher, with EVs and plug-in hybrids accounting for over 30% of new car sales in 2024, based on data from the China Association of Automobile Manufacturers.<\/p>\n

Why the difference? Policy is a big factor. European and Chinese governments are still pushing hard for cleaner cars, with strict emissions targets and ongoing incentives. In the US, the pressure is off. The result: American automakers are less motivated to push EVs, especially when their most profitable products are still gas-guzzling trucks and SUVs.<\/p>\n

What\u2019s Happening to Tesla and Other EV Leaders?<\/p>\n

Tesla remains the dominant player in the US EV market, accounting for about half of all sales in June. But even Tesla is feeling the pinch. The company\u2019s revenue from selling emissions credits\u2014a key income stream\u2014was cut in half last quarter, dropping to $439 million. That\u2019s because other automakers no longer need to buy as many credits to comply with relaxed regulations.<\/p>\n

Tesla CEO Elon Musk has acknowledged the challenges, warning of rough quarters ahead as incentives dry up. Meanwhile, Ford slashed its commitment to buying EV credits by $1.5 billion, signaling a broader industry pivot.<\/p>\n

Despite these headwinds, Tesla and other innovators aren\u2019t standing still. They\u2019re betting on new technology and lower costs to keep the EV dream alive.<\/p>\n

Are High Prices and Tariffs Killing EV Demand?<\/p>\n

Price is a huge hurdle. EVs are still pricier than comparable gas cars, and with incentives fading, the gap is even wider. Trade tariffs are making things worse, driving up costs for both domestic and imported vehicles. Cox Automotive analyst Erin Keating expects prices to keep rising through the summer as the impact of tariffs filters through the market.<\/p>\n

But there\u2019s a silver lining. Automakers are working to bring costs down by switching to cheaper lithium-iron-phosphate (LFP) batteries, which use fewer expensive metals. Ford\u2019s upcoming affordable EVs, starting with a $30,000 pickup in 2027, are a sign that lower prices are on the horizon. GM\u2019s Chevrolet Equinox EV, priced at $33,600, is already attracting buyers who might have balked at higher price tags.<\/p>\n

Will American Drivers Ever Embrace Small, Affordable EVs?<\/p>\n

There\u2019s a stereotype that Americans only want big trucks and SUVs. While that\u2019s partly true\u2014these vehicles are hugely popular\u2014there\u2019s growing interest in smaller, more affordable EVs, especially for commuting and city driving. Ford CEO Jim Farley calls this the \u201cModel T moment\u201d for EVs, pointing to a future where simple, inexpensive electric vehicles become the norm.<\/p>\n

Startups like Slate are jumping in, too, with bare-bones electric trucks designed for practicality and low cost. The trend toward electric golf carts as suburban runabouts hints that Americans aren\u2019t anti-EV\u2014they just want options that fit their budgets and lifestyles.<\/p>\n

What About Charging Infrastructure and Range Anxiety?<\/p>\n

Range anxiety is still a thing, but it\u2019s getting better. The US government had planned to invest $5 billion in expanding the charging network, and while some of that funding is in limbo, the private sector is stepping up. Tesla\u2019s Supercharger network is expanding, and other companies are building fast-charging stations along major highways.<\/p>\n

Plus, electricity in the US is relatively cheap, making EVs more affordable to run than gas cars. For many drivers, especially those who can charge at home or work, the convenience and savings are real.<\/p>\n

Are US Automakers at Risk of Falling Behind International Rivals?<\/p>\n

This is the big question. While American companies are taking a breather, Chinese and European automakers are racing ahead. Ford\u2019s Jim Farley sees Chinese brands like BYD and Geely as the real competition for the next generation of EVs. Right now, Chinese EVs are effectively blocked from the US market by high tariffs, but few expect that to last forever.<\/p>\n

If US automakers don\u2019t figure out how to build affordable, high-quality EVs, they risk losing out when the global market shifts decisively toward electric.<\/p>\n

So, Are EVs Really Dead in America?<\/p>\n

Not by a long shot. The US EV market is in a state of flux\u2014slowing down, yes, but not flatlining. Automakers are regrouping, looking for ways to make EVs profitable without government help. Consumers are waiting for prices to drop and charging to get easier. The technology is evolving, and the competition is heating up.<\/p>\n

The outcome? Expect a bumpy ride for the next few years. But as battery costs fall and new models hit the market, EVs will almost certainly make a comeback\u2014maybe not as quickly as in Europe or China, but in a way that fits the unique quirks of the American car market.<\/p>\n

For now, the best advice is to keep an eye on the affordable EVs coming down the pipeline. If you\u2019re thinking about making the switch, the next few years could bring some surprisingly good options\u2014especially if you\u2019re open to something a little smaller, a little simpler, and a lot more electric.<\/p>\n","protected":false},"excerpt":{"rendered":"

\"Tesla<\/a><\/p>\n

\n The Tesla Model Y is the best-selling EV in the US<\/p><\/blockquote>\n

Donald Trump’s government has killed EV purchase incentives and ripped up fuel consumption mandates<\/p>\n

\n

Prospects for electric car <\/a>sales look gloomy in the US after president Donald Trump\u2019s government killed purchase incentives and ripped up legislation forcing ca rmakers to improve their average fuel consumption. But does that mean EVs are dead over there?<\/p>\n

The recent push by car makers to launch more EVs in the US is definitely going into reverse, believes\u00a0General Motors. \u201cI would be surprised if there aren’t fewer EV retailers or EV sellers in the next four to five years,\u201d its CFO, Paul Jacobson, told the JP Morgan Auto Conference on 13 August.<\/p>\n

GM is currently the second largest EV seller in the US, after Tesla, but Jacobson warned investors that it would take the company longer for its EV business to become profitable as demand faded. Meanwhile, the company is \u201cinvesting pretty heavily in our ICE portfolio,\u201d he said.<\/p>\n

American EV demand should be showing a spike ahead of the 30 September ending of the $7500 federal tax credit for new electric cars,\u00a0and sales were up 4.6% in June, figures from S&P Global Mobility reported by Automotive News show. However, EVs’ market share was actually down, at 8.6% in the month\u00a0compared with 8.8% a year before.<\/p>\n

By contrast, in the EU, where car makers\u00a0are still very much guided by legislation to reduce CO2 emissions, the EV share stood at 16% for the first half of the year, according to figures from lobby group the ACEA, up from 12% in the first six months of 2024.<\/p>\n

In the US, EV sales are still dominated by Tesla, which accounted for half of all June sales, despite a drop in numbers in the face of strong growth from the likes of GM, Honda and Jeep, according to the S&P figures.<\/p>\n

Tesla now has a problem, however. The company relied on emissions credits for much of its income, but the three months to the end of June showed that such income halved to $439 million.<\/p>\n

Trump\u2019s ‘Big Beautiful Bill’, which\u00a0reduced the penalties for car makers busting the corporate average fuel economy (CAFE)\u00a0limits will \u201cimpact our total revenues going forward,\u201d said Tesla CFO Vaibhav Taneja\u00a0on the company\u2019s second-quarter call.\u00a0<\/p>\n

Essentially it means those selling ICE vehicles now don\u2019t need to worry about buying credits from Tesla or anyone else if they fall short. So Tesla loses twice, the first being the loss of the $7500 government incentive on EVs costing less than $55,000 (or $80,000 for SUVs and pick-up trucks).<\/p>\n

Tesla CEO Elon Musk was downbeat on the call.\u00a0\u201cWe’re in this weird transition period where we will lose a lot of incentives in the US. We probably could have a few rough quarters,\u201d he said.<\/p>\n

Ford<\/a> meanwhile said it had cut its commitment to purchase EV credits by a whopping $1.5 billion.<\/p>\n

Now that the pressure to hit 50% EV sales by 2030 in the US has been removed and California\u2019s ability to set an even tougher goal has been stripped out, car makers such as Ford, GM and Stellantis can focus on more profitable ICE vehicles.\u00a0<\/p>\n

The imperative to develop and sell more EVs has been removed almost completely. \u201cThat was really creating a lot of heavy discounting behavior,\u201d GM\u2019s Jacobson said. \u201c[Car makers] weren’t interested in selling EVs as much as they were interested in creating credits that were otherwise going to potentially be short going forward.\u201d<\/p>\n

Ford, GM and Stellantis in particular are going back to doing more of what they know best: selling high-displacement pick-ups and SUVs for big profits.<\/p>\n

For example, Stellantis under new CEO Antonio Filosa has brought back the Hemi V8 engine for the Ram pick-up, with production starting \u201cvery soon\u201d Filosa promised at the end of July.<\/p>\n

This came as it delayed its electric and range-extender\u00a0Ram pick-ups to 2026 and 2027 respectively.<\/p>\n

Others are following suit. Honda has reportedly killed a five- and seven-seat electric SUV, while Nissan has axed two electric saloons planned for sale in the country.<\/p>\n

This is what Trump\u00a0 \u2013\u00a0a long-time critic of EVs and any reduction of\u00a0CO2<\/span>\u00a0emissions in general \u2013\u00a0wanted.\u00a0<\/p>\n

In July, the US Environmental Protection Agency (EPA) proposed to rescind the 2009 Greenhouse Gas Endangerment Finding, which stated that a combination of greenhouse gases\u00a0\u201cthreaten the public health and welfare of current and future generations\u201d. With that cancelled, the EPA would no longer be allowed to regulate the CO2 output of new vehicles.\u00a0<\/p>\n

One argument the EPA put forward was that \u201ccomplying requires manufacturers to design and install new and more expensive technologies, thereby increasing the price of new vehicles\u201d.<\/p>\n

EVs are more expensive in the US than new cars overall.\u00a0Price guide Kelly Blue Book calculates the average transaction price (ie\u00a0with discount) at $57,734 in May, compared with $48,799 for all cars.<\/p>\n

However, Trump\u2019s stated desire to lower prices is at odds with the impact of trade tariffs, which is hurting both homegrown and import brands.<\/p>\n

\u201cWe are still expecting prices to move higher through the summer\u00a0as the inflationary impact of tariffs begins to hit,\u201d said Erin Keating, analyst at Blue Book parent company Cox Automotive.<\/p>\n

While the pressure has been removed to sell EVs of any kind, American car companies realise that electric drivetrains aren’t going away. At some point, they will have to make them profitably or lose out to those who can.<\/p>\n

\u201cWe really see the Chinese companies like Geely and BYD as a competitive set for our next generation of EVs, not the global OEMs,\u201d Ford CEO Jim Farley said on the company\u2019s second-quarter earnings call.<\/p>\n

Chinese EVs are as good as banned in the US, due to high tariffs, but few believe that will last forever.<\/p>\n

Ford went on to announce a forthcoming\u00a0range of affordable EVs based on a new Universal EV\u00a0platform,\u00a0starting with a mid-size, double-cab\u00a0pick-up that will arrive in 2027<\/a>, priced at $30,000 (around \u00a322,000).<\/p>\n

Farley described the innovative manufacturing method and reduced complexity as \u201ca Model T moment\u201d, suggesting Ford was once again reinventing car production.\u00a0<\/p>\n

\u201cWe believe the only way to really compete effectively with the Chinese over the globe on EVs is to go and really push ourselves to radically re-engineer and transform our engineering, supply chain and manufacturing process,\u201d Farley said.<\/p>\n

Small\u00a0(or what the US thinks as small) and cheap is the new mantra for future EV success. \u201cThe pure EV market in the US\u00a0seems to us very clear:\u00a0small vehicles used for commuting and around town,\u201d Farley said.<\/p>\n

Lower prices will be driven partly by Ford and GM\u00a0pushing into cheaper\u00a0lithium-iron-phosphate (LFP) batteries, which use fewer expensive metals like cobalt.<\/p>\n

Amazon-backed start-up Slate has a similar philosophy and is prepping a potential rival for Ford in the\u00a0\u00a320,000 electric Truck<\/a>, due in 2026 with wind-up windows and the driver’s smartphone standing in for a touchscreen.<\/p>\n

The success of GM\u2019s $33,600 Chevrolet Equinox compact electric SUV is showing that buyers will respond if the EV is cheap enough.<\/p>\n

Powering EVs is inexpensive in the US, thanks to low electricity prices, and of course they can be charged almost off-grid with enough solar panels to draw from \u2013\u00a0something that appeals to the American sense of self-sufficiency.\u00a0<\/p>\n

The current trend for electric golf carts as suburban runabouts\u00a0in the US suggests that buyers are not innately anti-EV, even outside of EV hotspots like California.<\/p>\n

The charging infrastructure\u00a0for longer journeys could also continue to improve\u00a0after Trump\u2019s administration backed off its\u00a0stated plan to cancel a $5bn funding programme to grow a broader network.<\/p>\n

Right now, the American\u00a0car industry is dialling back investment in EVs and pouring more money back into ICE vehicles \u2013\u00a0but it\u2019s not a dramatic reset, given how much slower the market was in coming round to EVs compared with China or Europe.<\/p>\n

\u201cReally, it’s a North American issue.\u201d Patrick McCann, CFO of Canadian parts giant Magna, told the JP Morgan conference. \u201cEVs are coming;\u00a0it’s just a matter of when and at what levels.”<\/p>\n<\/div>\n","protected":false},"author":1,"featured_media":68270,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"footnotes":""},"categories":[2,137],"tags":[],"class_list":["post-68269","post","type-post","status-publish","format-standard","has-post-thumbnail","category-featured","category-news"],"_links":{"self":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/68269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/comments?post=68269"}],"version-history":[{"count":0,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/68269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media\/68270"}],"wp:attachment":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media?parent=68269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/categories?post=68269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/tags?post=68269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}