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

After a record year in 2024, the U.S. EV market experienced a 4% sales decline in 2025, driven by the expiration of federal tax credits and a volatile regulatory environment. While charging infrastructure continues to grow through private investment, nearly $20 billion in manufacturing projects have been canceled, particularly in the Midwest and South. Major automakers are shifting strategies toward hybrids and affordable models to mitigate losses, while workers face increased layoffs and production pauses. Despite these setbacks, long-term forecasts from BloombergNEF and the IEA suggest continued, albeit slower, EV adoption through 2030.

• U.S. EV sales declined by 4% in 2025 compared to 2024, with EVs accounting for 9% of passenger car, truck, and SUV sales (over 1.5 million vehicles). Battery electric vehicles constituted 82% of the 2025 market.
• Federal policy changes have created industry instability, including the expiration of the EV purchase tax credit in September 2025, a temporary freeze of National Electric Vehicle Infrastructure (NEVI) program funding, and the EPA's February 2026 repeal of federal limits on vehicle tailpipe emissions.
• Public charging infrastructure grew by 30% over 2024, with over 18,000 direct current fast charging (DCFC) ports installed. This growth was primarily driven by private entities like 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 planned EV manufacturing investments have been canceled since 2025, with significant impacts in the Midwest and South. Notable cancellations include Ford's $2.8 billion project at BlueOval City in Tennessee, a $5.8 billion Kentucky complex, and a $3.2 billion Stellantis factory in Illinois.
• Major automakers have recorded substantial 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 pivoting toward a flexible mix of hybrids and gas cars, prioritizing affordable models over luxury ones, and repurposing excess battery capacity for energy storage systems, such as Ford's facility in Glendale, Kentucky.
• The workforce is experiencing unexpected volatility, exemplified by 2,100 permanent and temporary layoffs at GM's Ultium Cells plants in Ohio and Tennessee in October 2025, and temporary layoffs of over 700 workers at Ford's Rouge Electric Vehicle Center in Michigan in late 2024.
• Long-term EV adoption forecasts have been revised downward: BloombergNEF now expects a 24% sales share by 2030 (down from 46% in 2024), and the IEA expects a 20% share (down from 50% in 2024).

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} }