In May 2023, Ford introduced a new three-row electric SUV at an investor event in Dearborn, Michigan. The company said it would be fast, spacious, quiet and able to travel about 350 miles on one charge. Doug Field, who led Ford’s EV business at the time, called it a “personal bullet train,” according to Ford officials.
At that time, the future of electric vehicles (EVs) looked very bright in the US. The government had invested billions of dollars in EV charging stations and buyers could also get a $7,500 federal tax credit for buying an electric car, according to the New York Times. EV sales were growing very quickly. Annual US EV sales increased from around 490,000 vehicles in 2021 to more than 800,000 in 2022, a jump of about 60%.
Why Ford’s EV plan failed
Many experts believed the US EV market was entering a new phase, where electric cars would become popular with everyday buyers, not just early adopters. Because of this, Ford thought launching a new long-range electric SUV would be a good long-term investment. But the project soon faced problems.
In April 2024, Ford delayed the SUV by two years. The company said it wanted to use newer battery technology before launching it. A few months later, in August 2024, Ford cancelled the project completely.
Ford Chief Financial Officer John Lawler said the company needed to make sure its electric vehicles could make a profit. At first, Ford’s decision did not attract much attention. But later, it became clear that many other automakers were making similar moves, according to The New York Times.
More car companies dropped EV plans
In July 2024, General Motors delayed the launch of a new Buick electric SUV. In September 2024, Volvo reduced its plans to sell only electric vehicles in the US. During 2025, Dodge cancelled its planned electric Charger and its long-awaited electric Ram pickup truck. Jeep also cancelled two planned plug-in hybrid models. Honda and Nissan dropped several electric sedan projects that had been planned for the US market.
Trump policy changed the EV market
The situation became even harder after Donald Trump returned to office for a second term. The Trump administration removed the federal EV tax credit and also weakened tailpipe emission rules. Without the tax credit and stricter environmental rules, sales of battery-powered vehicles fell, according to the New York Times. As EV demand slowed, the Big Three US automakers, Ford, General Motors and Stellantis, which shifted their focus back to gasoline-powered trucks and large SUVs.
Several EV assembly lines stopped operating because production was reduced. Many battery factories that had been built during former President Joe Biden’s administration were either shut down or converted to make industrial battery storage systems instead. Thousands of workers lost their jobs as companies cut back their EV operations. Doug Field, who had led Ford’s cancelled electric SUV project, also left the company during a restructuring in 2026, according to the New York Times.
Also read: Lucid stock plunges 55% after report says EV maker may file for bankruptcy
The financial losses from these cancelled EV plans have been enormous. Stellantis reported about $26 billion in EV-related losses, while Ford reported around $19 billion in losses, according to New York Times. Around the world, EV demand is still growing rapidly, according to the International Energy Agency (IEA). The IEA said one out of every four vehicles sold globally in 2025 was battery-powered, showing that electric vehicles continue to gain popularity worldwide.
China is leading the EV race
Bloomberg analysts expect this number to more than double over the next decade, meaning gasoline-powered cars could become the minority among new vehicle sales. Asian and European automakers have continued spending billions of dollars on battery technology while US companies have slowed their investments. China now produces about 75% of all electric vehicles sold globally, while the United States produces only about 5%. Chinese company BYD has become the world’s largest maker of battery-powered vehicles.
Stephen Ezell, a senior economist at the Information Technology and Innovation Foundation (ITIF), said China is moving ahead very quickly in EV technology. He said Chinese companies can design and launch a new electric vehicle about 33% faster than US automakers, according to The New York Times. Ezell believes this gap will keep growing. He warned that if this continues, it could become very difficult for US car companies to catch up with Chinese rivals. He also said the US auto industry has been losing market share to foreign competitors for many years.
Can US automakers recover?
Instead, changing government policies, business mistakes and repeated strategy changes have slowed the industry’s progress just as interest in EVs is rising again. In April 2026, J.D. Power found that 26% of people planning to buy a new car said they were very likely to consider an electric vehicle, according to the survey. Interest in EVs could grow even more because gasoline prices have risen after tensions in the Strait of Hormuz.
Stephen Ezell said the US auto industry is now at an “existential moment,” meaning its future could depend on the decisions it makes now. Ezell said the best outcome would be for Detroit automakers to build a strong long-term EV strategy while continuing to earn money from traditional gasoline-powered trucks, according to the New York Times.
Economist Susan Helper warned that the worst outcome would be if US automakers continue depending mainly on gasoline-powered trucks while the rest of the world moves toward electric vehicles. She called this a βshrinking island of ICEβ. Ford CEO Jim Farley also warned that choosing the wrong strategy could threaten the company’s future. He said if Ford does not make the right decisions now, “Ford could maybe not exist,” according to the New York Times.
ππππ/π πππ πππππππ ππππ
