"Federal subsidies are gone, and EV sales have cooled since September. Even Tesla, America's dominant EV maker, is experiencing a sales slowdown. In December, Ford discontinued production of the all-electric F-150 and announced a $19.4 billion write-down tied to its battery investments. A week later, Volkswagen halted production of the electric ID. Buzz minivan for 2026, with plans to potentially revive it in 2027."
"That trend snowballed on Thursday. General Motors said it expects to lose $6 billion as it retools its EV strategy. On the same day, Stellantis went even further, discontinuing every plug-in hybrid in its lineup - including the once-bestselling Jeep Wrangler 4xe. But beneath the headline-grabbing cancellations, there's a quieter shift underway that could end up reviving the ailing EV market. It has everything to do with the auto industry's biggest problem: price."
"This year, legacy automakers - including several that recently pulled back EV projects - are preparing their factory floors to churn out lower-cost electric cars. Startups are jumping into the fray, too. Nissan's Leaf just rebooted as a $29,000 Tesla Model Y look-alike. Subaru and Toyota are launching the Uncharted and C-HR - nearly identical crossover SUVs with $35,000 starting prices."
EV sales cooled after September and federal subsidies ended, leading to a slowdown even at Tesla and prompting automakers to scale back plans. In December Ford halted the all-electric F-150 and recorded a $19.4 billion battery-related write-down, and Volkswagen paused ID. Buzz production for 2026 with possible revival in 2027. General Motors forecasted a $6 billion loss while Stellantis discontinued all plug-in hybrids, including the Jeep Wrangler 4xe. Price remains the central challenge, and manufacturers and startups are preparing lower-cost, mainstream electric models for 2026 to push down prices and broaden consumer demand.
Read at Business Insider
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