Why the US auto industry is bracing for an EV winter

"Electric vehicles are facing a perfect storm in the US - and it's threatening to throw the industry into a deep freeze. A nightmare combination of policy changes, tariffs, and supply chain upheavals has prompted automakers that once set ambitious EV targets to revise their strategies, lay off workers, and double down on hybrids and gasoline vehicles. CEOs have been sounding the alarm bells for a while."

"The end of the $7,500 tax credit for new electric vehicles in September prompted Ford boss Jim Farley to predict that EV market share in the US would nearly halve to around 5% in the near term, while Tesla CEO Elon Musk warned in July that the company could face a "rough few quarters" as federal support for electric cars was rolled back."

Policy changes, tariffs, and supply-chain disruptions have converged to weaken US electric-vehicle demand. The removal of a $7,500 federal tax credit in September and other federal support rollbacks have prompted automakers to revise EV strategies, prioritize hybrids and gasoline models, and implement layoffs. EV sales spiked in September as buyers rushed to claim credits, then plunged nearly 49% in October. Industry analysts project EVs will represent about 24% of new-car sales by 2030, far below earlier targets near 50%. Affordability constraints remain a primary barrier to adoption, and several manufacturers have warned of short-term financial pressure.

Read at Business Insider