For the US EV Market, a More Turbulent Road Lies Ahead

The US electric vehicle (EV) market is experiencing a slowdown in momentum due to federal policy shifts, including the expiration of purchase tax credits and the repeal of tailpipe emission limits. While EV sales fell 4% in 2025, charging infrastructure continues to expand through private investment. Automakers are pivoting away from all-electric targets toward a mix of hybrids and affordable models, while manufacturing investments in the Midwest and South have seen significant cancellations.

• US EV sales declined by 4% in 2025 compared to 2024, with over 1.5 million EVs sold. Battery electric vehicles constituted the majority of the market at 82% in 2025.
• Federal policy changes have created instability, including the expiration of the EV purchase tax credit in September 2025, the freezing of National Electric Vehicle Infrastructure (NEVI) program funding, and the EPA's February 2026 rule repealing federal limits on vehicle tailpipe emissions.
• Despite the sales slowdown, the US charging network grew by 30% over 2024, adding more than 18,000 direct current fast charging (DCFC) ports. This growth was primarily driven by private companies such as Tesla, Electrify America, and Ionna, as the NEVI program accounted for only 3% of the total DCFC ports added in 2025.
• Nearly $20 billion in announced EV manufacturing investments have been canceled since 2025, particularly affecting the Midwest and South. Notable cancellations include Ford's $2.8 billion investment in BlueOval City in Stanton, Tennessee, a $5.8 billion Kentucky complex, and a $3.2 billion Stellantis battery factory in Illinois.
• Major automakers have recorded significant financial losses due to scaling back EV strategies: Stellantis reported a $26.3 billion write-down for fiscal year 2025, Ford recorded a $19.5 billion write-down, and General Motors recorded a $7.6 billion write-down.
• Automakers are shifting strategies by moving away from all-electric targets toward a mix of hybrids and gas cars, and prioritizing affordable models over luxury ones. Examples include Ford launching a mid-size electric pickup around $30,000 and GM reintroducing the Chevrolet Bolt at a similar price point.
• State and local governments are filling the federal policy gap with financial incentives. Colorado increased its EV rebate from $6,000 to $9,000 in November, and Massachusetts offers rebates between $3,500 and $6,000 through its MOR-EV program.

APA

World Resources Institute (2026). For the US EV Market, a More Turbulent Road Lies Ahead. https://www.wri.org/insights/us-state-of-electric-vehicles

Chicago

World Resources Institute. For the US EV Market, a More Turbulent Road Lies Ahead. 2026. https://www.wri.org/insights/us-state-of-electric-vehicles.

Wikipedia

{{cite report |author=World Resources Institute |title=For the US EV Market, a More Turbulent Road Lies Ahead |date=14 April 2026 |url=https://www.wri.org/insights/us-state-of-electric-vehicles |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2026market, author = {{World Resources Institute}}, title = {{For the US EV Market, a More Turbulent Road Lies Ahead}}, institution = {World Resources Institute}, year = {2026}, month = apr, url = {https://www.wri.org/insights/us-state-of-electric-vehicles}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }