U.S. electric vehicle registrations plunged 41 percent last year, marking what S&P Global Mobility analyst Tom Libby called a market reset after Congress repealed the federal EV tax credit. The sharp drop highlights growing headwinds for EV adoption as buyers, regulators, and automakers reassess electrification strategies.
The decline left only a handful of manufacturers holding steady. Tesla, Rivian, Lucid, and Cadillac remain relatively resilient, in part because they have clearer model roadmaps and stronger positioning in their segments. Other brands have struggled to convert product plans into sustainable demand.
Honda exemplifies the retreat. The company cut Prologue EV production by half and now expects to sell just 17,900 units. Honda also canceled three planned U.S.-built EVs: the Zero Series SUV, the Zero Series saloon, and the Acura RSX. Executives blamed weak demand, tariff pressures, and profitability challenges, and said the brand will shift focus back toward hybrids.
Those changes have real financial consequences. Automakers have booked up to $15.8 billion in losses tied to EV programs, a hit that is pushing the industrys total EV restructuring bill toward roughly $70 billion. Suppliers are feeling the squeeze as OEMs trim volumes and reset investments.
Amid the pullback on EVs, some dealers see reasons for optimism, particularly at Stellantis. Dealers pointed to an upcoming wave of products, including performance-oriented trucks, a revived Dodge Charger offered in two- and four-door formats, and a refreshed Pacifica minivan that is now available to order.
Stellantis is also bringing back the Ram ProMaster City small van, built in Turkey and upfitted in Baltimore, with production slated to begin later this year and a target price under $40,000. An all-new Jeep Grand Cherokee is on the horizon as well. Dealers say recent MSRP adjustments on Jeep models have made them more affordable over the past six to 12 months.
The broader takeaway is a slower than expected transition to electrified mobility. Affordability remains a central concern, and suppliers and manufacturers face continued pressure into early 2026. Bank of America data already show new car sales starting the year on weak footing.
This story draws on reporting from S&P Global Mobility and industry sources. Source: https://www.youtube.com/watch?v=iPG0hW0K7LA
