In May 2023, Ford unveiled a new three-row electric SUV at an investor event in Dearborn, Michigan. The company says the car is fast, roomy, quiet and can travel about 350 miles on a single charge. Doug Field, who was leading Ford’s electric vehicle business at the time, called it a “personal bullet train,” according to Ford officials.
At the time, the future of electric vehicles (EVs) looked very bright in the United States. this government The company has invested billions in electric vehicle charging stations, and buyers of electric vehicles can also receive a $7,500 federal tax credit, according to the New York Times. Electric vehicle sales are growing very fast. Annual sales of electric vehicles in the United States will increase from approximately 490,000 vehicles in 2021 to more than 800,000 vehicles in 2022, an increase of approximately 60%.
Why Ford’s electric car plan failed
Many experts believe the U.S. electric vehicle market is entering a new phase in which electric vehicles will become popular with everyday buyers, not just early adopters. Because of this, Ford believes launching a new long-range electric SUV would be a good long-term investment. But the project soon ran into problems.
In April 2024, Ford delayed the launch of the SUV by two years. The company said it hopes to use newer battery technology before launching it. A few months later, in August 2024, Ford canceled the project entirely.
Ford Chief Financial Officer John Lawler said the company needs to ensure its electric vehicles can be profitable. Initially, Ford’s decision didn’t attract much attention. But it was later discovered that many other automakers were making similar moves, The New York Times reported.
More car companies abandon plans for electric cars
In July 2024, General Motors postponed the launch of the new Buick electric SUV. In September 2024, Volvo scaled back its plans to sell only electric vehicles in the United States. During 2025, Dodge canceled the planned electric Charger and the long-awaited electric Ram pickup truck. Jeep also canceled two planned plug-in hybrid models. Honda and Nissan have abandoned several electric sedan projects that had been planned for the U.S. market.
Trump policies transform electric vehicle market
Things get more difficult after that Donald Trump Returning to office for a second term. The Trump administration has eliminated federal electric vehicle tax credits and weakened tailpipe emissions rules. According to the New York Times, without tax credits and stricter environmental rules, sales of electric vehicles will decline. As demand for electric vehicles slows, the top three U.S. automakers Ford, General Motors and Stellantis are refocusing their attention on gasoline-powered trucks and large SUVs.
Several electric vehicle assembly lines have ceased operations due to reduced production. Many battery factories built during the administration of former President Joe Biden have either been shut down or converted to making industrial battery storage systems. Thousands of workers have lost their jobs as companies cut back on electric vehicle operations. Doug Field, who led Ford’s canceled electric SUV program, also left the company during a restructuring in 2026, The New York Times reported.
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The financial toll from these canceled EV plans is huge. According to the New York Times, Stellantis reported electric vehicle-related losses of about $26 billion, while Ford reported losses of about $19 billion. According to the International Energy Agency (IEA), global demand for electric vehicles is still growing rapidly. One in every four cars sold globally will be battery-powered by 2025, the IEA said, indicating the continued popularity of electric vehicles around the world.
China leads the electric car race
Bloomberg analysts expect that number to more than double over the next decade, meaning gasoline-powered cars could become a minority of new car sales. Asian and European automakers continue to invest billions of dollars in battery technology, while U.S. companies have slowed investment. Currently, China produces about 75% of global electric vehicle sales, while the United States only produces about 5%. China’s BYD has become the world’s largest maker of battery-powered cars.
Stephen Ezell, senior economist at the Information Technology and Innovation Foundation (ITIF), said that China is making very rapid progress in electric vehicle technology. He said Chinese companies could design and launch new electric car According to the New York Times, it is about 33% faster than U.S. automakers. Ezell believes the gap will continue to grow. He warned that if the situation persists, it may be difficult for U.S. auto companies to catch up with Chinese rivals. He also said that for years, the U.S. auto industry has lost market share to foreign competitors.
Can U.S. automakers recover?
Instead, changing government policies, business mistakes and repeated strategic changes have slowed the industry’s progress as interest in electric vehicles picks up again. In April 2026, a JD Power survey found that 26% of people planning to buy a new car said they were likely to consider an electric vehicle. Interest in electric vehicles is likely to grow further as gasoline prices rise following tensions in the Strait of Hormuz.
Stephen Ezell says the U.S. auto industry is now in a “life-or-death moment,” meaning its future may depend on the decisions it makes now. According to the New York Times, Ezell said the best outcome would be for the Detroit automaker to develop a strong long-term electric vehicle strategy while continuing to make money from traditional gasoline-powered trucks.
Economist Susan Helper warned that the worst outcome would be if U.S. automakers continued to rely primarily on gasoline-powered trucks while the rest of the world switched to electric vehicles. She calls it “Shrunk Iceland.” Ford CEO Jim Farley also warned that choosing the wrong strategy could threaten the company’s future. If Ford doesn’t make the right decision now, he said, “Ford may not exist,” according to The New York Times.
