US EV – Electric vehicles are booming worldwide, but the United States is stuck. Global sales topped 20 million in 2025, yet US sales fell, and the latest quarter was hit hard. Policy changes removed key incentives, Chinese EV duties shut out affordable imports, and m
On a global scale, the EV wave is accelerating fast enough to feel inevitable. In the United States, the moment feels different—like buyers are being pushed backward at the same time the rest of the world is moving forward.
In 2025, one in four cars sold anywhere in the world was electric. Worldwide EV sales exceeded 20 million units in 2025, growing 20% from 2024. Battery costs also eased: the average EV battery price dropped 8% as lower raw material costs and wider adoption of lithium iron phosphate chemistry helped bring prices down.
The numbers should have translated cleanly across borders. They didn’t. In the US, EV sales were slightly down year-on-year. The shock comes in the last quarter of 2025: new EV sales in that period were recorded as 45% lower than the same quarter in 2024.
It’s not a mystery why affordability has become the fault line. The policy changes behind it were direct and fast. The One Big Beautiful Bill Act eliminated tax credits for new and used EV purchases after September 2025. It also removed penalties for automakers that fail to meet fuel efficiency standards—cutting into the financial pressure to prioritize EVs.
On top of that, the US imposed 100% duties on Chinese EVs, including affordable models. In practice, those vehicles are described as practically unavailable to American buyers—even though the same affordable Chinese EVs are said to dominate sales across Latin America, Southeast Asia, and Europe.
Then comes the reality of what’s on US lots. The IEA report notes that more than 85% of EV models available in the US are SUVs or other large vehicles. Those vehicles come with bigger batteries, which cost more, pushing the average EV price higher.
While the US leans toward premium and heavy EVs, other markets are moving in the opposite direction. Vietnam is held up as an example of what accessible pricing can do: EV penetration exceeded 40% in 2025, driven by VinFast’s affordable small models.
The pressure shows up inside American automakers’ plans too. Faced with slower-than-expected consumer demand. shifting federal policy. and profitability concerns. the Big Three have already scaled back fully electric vehicle ambitions. Instead, they’re pivoting toward plug-in hybrids, traditional gas-electric hybrids, and ICE trucks.
Ford is one of the clearest examples. The company scrapped its three-row electric SUV and absorbed a $400 million write-down. It also pulled the plug on its all-electric F-150 Lightning. The strategy now is a range-extended electric vehicle (EREV), designed to provide over 700 miles of range.
General Motors has made a similar retreat. It reduced its short-term EV production target and abandoned its goal of reaching a one-million-unit EV manufacturing capacity. The shift is toward gas-powered trucks and SUVs, with manufacturing capacity redirected accordingly.
Stellantis is also moving toward multi-energy vehicles. It is focusing on gas-extended EVs, highlighted by the Ramcharger, and 4xe plug-in hybrids.
Taken together. the pattern is hard to ignore: the global market is rewarded for falling battery prices and rapid EV adoption. while the US market is being squeezed from multiple directions at once—fewer incentives. higher costs tied to import duties. and a lineup dominated by larger. more expensive vehicles. As those constraints tighten. automakers respond by backing away from pure BEVs. even as the rest of the world keeps buying electric.
EVs electric vehicles US EV sales IEA Global EV Outlook 2026 One Big Beautiful Bill Act EV tax credits Chinese EV duties Tesla Ford General Motors Stellantis plug-in hybrids EREV