Carmakers registered $65 billion in write-offs globally as companies were forced to overhaul their EV investments, squeezed by a pivot in US climate policy and an overstated enthusiasm for the green transition.
Since the US axed its $7,500 federal tax credit in September, automakers and battery manufacturers have been scaling back by canceling projects, downsizing investments, and reviving plans to produce more traditional gas-powered vehicles.
It’s not a uniform retreat, however; sales of fully ​electric cars surpassed those of petrol-only vehicles in the EU for the first time in December, but European giants are still badly bruised from diminishing US demand: Stellantis, which once believed EVs would make up half of its US sales by 2030, took a $26 billion hit after scrapping several fully electric models and reviving its 5.7-litre engine for the US market. Industry leaders now expect EVs to account for just 5% of the new US vehicle market in the coming years.
