The landscape for electric vehicles (EVs) in the United States is undergoing a significant shift as federal policies pivot away from support, creating a new environment of uncertainty. Despite these challenges, several states and automakers remain committed to advancing the EV industry through strategic investments and programs aimed at bolstering infrastructure and consumer adoption.
Upon taking office, President Donald Trump enacted an executive order to effectively end federal support for EVs, including the $7,500 tax credit previously available to buyers since 2022. This decision also affects federal backing for EV charging infrastructure and low-interest loans for manufacturers developing EV and battery facilities. The administration has further indicated intentions to revoke state-level regulations from places like California and New York that aim to ban gas-powered vehicle sales by 2035.
Federal incentives for both new and used EVs officially ended in September, but major carmakers like General Motors and Ford have continued to offer competitive pricing to encourage shifts from internal combustion engine vehicles to electric alternatives. The federal tax credit for EV charging stations is also set to expire in June 2026.
Jim Farley, CEO of Ford, commented on the policy change by saying, “I think it’s going to be a vibrant industry, but it’s going to be smaller, way smaller than we thought, especially with the policy change.” This sentiment reflects broader industry concerns that the removal of tax credits may dampen enthusiasm and slow production growth.
Despite these federal hurdles, several automakers are doubling down on their EV investments. Ford, for instance, has announced a $5 billion investment in EV production, introducing an electric pickup priced at $30,000 to remain competitive with traditional vehicles. Hyundai has also reiterated its commitment to the U.S. EV market, with CEO José Muñoz highlighting the flexibility to adjust production between EVs and traditional models at its Georgia facility based on demand.
General Motors’ CFO, Paul Jacobson, remarked on the transition period, stating, “We need to let it settle and understand where is that natural (EV) demand going forward and how do we meet that natural demand.” He anticipates eventual growth in the EV sector, albeit at a moderated rate without the tax incentives.
At the state level, initiatives continue to push forward. For example, Illinois is steadfast in its goal to roll out 1 million EVs by 2030 through its EV Readiness program, despite cutbacks on federal funding for charging infrastructure. ComEd funds the program, which guides municipalities in enhancing their permitting processes and raising awareness about EV benefits and incentives. Cristina Botero from ComEd pointed out, “People sometimes think that the dollars are the only reason people are not transitioning to EVs, but a big part of it is education."
The shifting federal stance has undoubtedly complicated the U.S. EV industry; however, the perseverance of states and automakers offers hope for continued growth and adaptation in the electric vehicle market.
