Well, we got it wrong — the U.S. EV market in serious trouble

U.S. EV market in serious trouble

Back in September when the $7,500 federal tax credit on electric vehicles (EVs) ran out we commented that it may be a blessing in disguise: EV manufacturers would likely lower prices to hold on to market share. Well, we got it wrong and the U.S. EV market in serious trouble.

To be sure, Hyundai almost immediately cut the price of new 2026 Ioniq 5 models by as much as $9,800. The company also offered its own $7,500 incentives for remaining 2025 inventory. The model is Hyundai’s best seller.

GM pulls the plug

But, price drops ended there and as the new year ramps up, General Motors said it will take a one-time earnings hit of $7.1 billion in its quarterly financial results, as the company pulls back from EVs due the shift US policies.

This is on the heels of a $1.6 billion write-down in the third quarter, also caused by GM‘s move away from EVs following US policy changes.

Ford backs out too

Not to be outdone, Ford announced in December that it too was scaling back its EV production, which is expected to cost the company nearly $20 billion.

In a news release at the time, the company said “Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs and regulatory changes.”

Future tech

This comes at a time when solid-state batteries are set to make their debut in the U.S., albeit on a motorcycle, pointing to a moment in time when the long talked about technology — that promises twice the range, half the charge time and 2/3 the weight — finally gets a foothold.

All the while Chinese EV manufacturers are going full steam ahead.

But, mea culpa, at least here in the U.S., the market is in a tailspin.

A news commentator said earlier today, albeit on a very different issue, that oil is 19th and 20th century technology and electronics are for the 21st.

But it fits here too. The U.S. is ceding the future to international competitors.

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Technology is always changing and what is current and accurate today may be literally out-of-date and inaccurate tomorrow. And when it comes to the current state of flux in the auto industry, nothing is more true.

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