The “Death” of the Electric Vehicle

If you are as old as me, you remember a song and dance called the “Electric Slide.” You could not go anywhere it be early 80’s without hearing this song and wanting to move your feet to the beat. It’s still a standard in every wedding DJ’s playlist.

But its popularity faded. And, like this Electric Song, the Electric Vehicle (EV) may have had its day in the sun as it fades into the archives of one hit wonders.

After years of struggling, much of the talk is now of the “death of the EV” in the United States. Drastic changes in policy, consumer headwinds, and wavering confidence are forcing a reassessment of the EV’s future in America. But the full story is more complex, less a burial than a hard-fought resurgence. 

The Headwinds are Blowing

The Trump administration’s swift rollback of federal EV tax credits, coupled with new tariffs on imported vehicles and batteries, has reshaped the U.S. auto market. As of September 2025, the $7,500 consumer tax credit, a cornerstone of EV adoption, is gone. And automakers are already feeling the impact. Industry forecasts now show U.S. EV sales at just 8.5% of total vehicle sales for 2025, down from earlier projections of around 10%. In terms of volume, sales are expected to remain flat compared to last year.

Adding to the slowdown, Washington’s retreat from Biden-era sales targets and emissions rules has stripped away key policy levers that once pushed automakers to scale up EV production.

Automakers killed or delayed dozens of upcoming EV models. Honda, Stellantis, and Nissan pulled back from their once bold plans for all electric lineups. Supply chain disruptions and shifting U.S. policy are to blame, leaving many EV investments stranded before ever reaching showroom floors.

Even Tesla, the longtime market leader, is feeling the strain. Its U.S. market share has slipped to 46%, accompanied by a noticeable dip in sales.

Consumer Beware

Even with more EV models on the market and growing charging infrastructure, consumer interest is fading. Just 16% of Americans now say they’re likely to choose an EV for their next vehicle—the lowest level since 2019, while 63% say it’s unlikely. 

And their concerns are not new. I purchase my EV over five years ago and I had all the same concerns, except for the last bullet, “Government Policy.”

• High battery replacement and repair costs
• Upfront purchase price
• Limited driving range and inconsistent charging access
• Range anxiety
• Confusion around shifting government policy

Over the past five years, many of these concerns have seen real progress. EVs have steadily improved, with advancements in technology, longer driving ranges, lower prices, and a significantly expanded charging infrastructure. 

Yet, the one area not moving forward is the current White House administration’s commitment to supporting EVs and clean energy. Could this current Administration be the final nail in the EV coffin?

A Pause Not a Funeral

The narrative of total collapse doesn’t hold up to the facts. While growth has undeniably cooled, the U.S. EV market remains significant:

• Despite the dip in sales the U.S. had over 600,000 EVs sold in the first half of 2025
• In the luxury segment, EVs still command about 23% of sales
• Domestic automakers, led by GM, are expanding their EV portfolios and steadily closing the gap with Tesla.

But the U.S. market isn’t indicative of EV popularity around the world. Globally, EV adoption is accelerating in China and Europe, fueled by lower-cost models and strong government incentives. That momentum is reinforcing global supply chains and technological innovation, setting the stage for long-term gains in the U.S.

Reinvention Not Extinction

The U.S. EV sector now faces a far tougher landscape. With no support from the White House, fading consumer enthusiasm, and automakers recalibrating their strategies, political momentum has given way to harsh market realities. Talk of the EV’s demise is premature, but a period of reckoning has clearly begun.

Those predicting the end of the EV era will be let down. Those expecting runaway growth will need patience. What lies ahead is a more grounded phase, where EV’s must stand on their own merits, competing directly with gas and hybrid alternatives, and winning over a cautious public one buyer at a time.

The EV era isn’t over; it’s just between songs. Just like the Electric Slide, there will always be another Electric song whether it is Electric Avenue or how about the song “Electric Car” by “They Might Be Giants” from way back in 2007 about the importance of sustainable transportation.

For the Good,
Michael Nichols

Numbers You Need to Know

92%

Globally, over 1-in-5 (22%) of new cars sold were electric in 2024. This share was 92% in Norway, and in China, it was almost 50%. (Our World in Data)

17 Million

Electric car sales topped 17 million worldwide in 2024, rising by more than 25%. (International Energy Agency)

$7,800

The 2025 BYD Seagull EV is available starting at just 56,800 yuan ($7,800). The offer is for the non-Smart Driving Vitality Edition model, which usually starts at 69,800 yuan ($9,500). (Electrek)

What’s New in Sustainable Investing

Brookfield’s Sustainable Investment in Duke Energy Florida

Brookfield partners with Duke Energy to modernise Florida’s electric grid, aligning with a US$87bn plan for sustainable growth.(Sustainability Magazine)

China has launched a new, comprehensive Green Finance Endorsed Project Catalogue

This unified taxonomy aims to streamline the identification and funding of environmentally sustainable projects across the country’s financial markets. (Seneca)

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