The future of EVs hangs in the balance

Writer: Mirella Franzese

November 2025 — After a strong third quarter, electric vehicle (EV) sales surged 40.7%, driving market share to new all-time highs. Yet, the outlook for EV adoption in America is more uncertain than ever.

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After the Trump administration pulled back support, U.S. automakers are bracing for a plummet in sales this quarter and next — one that is expected to massively forestall plans for an electric future. 

General Motors (GM), for instance, just took a $1.6 billion hit on its electric vehicle rollout as the government terminated its $7,500 EV tax incentives on Sept. 30, as reported by NBC. In a letter to shareholders, GM said it expects the adoption rate of EVs to slow down following the termination of tax incentives and tighter emissions regulations.

Under these circumstances, Ford has put a pause on plans to build out an EV plant in Tennessee. The automaker, which lost $2.2 billion in the EV segment in the first half of the year, told Reuters that it would push back its product launch, hoping for stronger customer demand to achieve profitability. 

“(The EV industry) is going to be smaller, way smaller than we thought, especially with the policy change,” Jim Farley, CEO of Ford Motors, said at a recent company event, as cited by CNBC. “I wouldn’t be surprised that the EV sales in the U.S. go down to 5%.”

In addition to Ford, Kia and Hyundai have reported massive dips in EV sales as buyers rushed to pull purchases before credits ended under changes by the Trump administration. Meanwhile, Tesla, the national EV leader, also suffered drastic losses in the second quarter as sales fell 13%. CEO Elon Musk warned that “rough quarters” lay ahead for the company.   

As a whole, EV adoption rates across the U.S. remain largely mixed because of diverging economic policies, demographic makeup, and the ability to deploy infrastructure on a state-by-state basis. While some states have willfully shored up investment in the EV market, others have lagged behind, creating critical gaps in infrastructure to power the next generation of vehicles. 

“Shifts in public policy often drive changes in demand,” explained Donald Scarinci, managing partner at New Jersey law firm Scarinci Hollenbeck LLC, in an interview with Invest:. “There are emerging issues related to the power grid, electric vehicles, and the transition away from gasoline-powered engines,” which are creating new challenges. 

The West Coast and Northeast remain the national leaders in EV adoption, propped up by states like California, New Jersey, Vermont, and Washington. Electric vehicles make up a significant percentage of total new auto sales in those regions, according to the most up-to-date data from the Alliance for Automotive Innovation. 

At the same time, Southern states are ramping up sales in an effort to drive growth. In the first half of the year, after California, Florida sold more electric vehicles than any other state (65,798), followed by Texas, which sold 43,418. 

Georgia is also scaling EV production. For instance, the Hyundai Motor Group celebrated the grand opening of its Metaplant facility near Savannah, GA, earlier in 2025. where it now expects to produce 500,000 EVs per year. For Baker Donelson’s Atlanta Managing Shareholder Ivy Cadle, this project has been pivotal for the state of Georgia. 

“That area is experiencing growth that’s really unrivaled in the state,” Cadle told Invest:. “I expect our government will continue to look for ways to help the economy grow through these types of partnerships.”

Despite its economic potential, EV adoption is still lagging. Even in California, the highest-performing market, the rate of adoption is only 5.8%. The margins are even smaller at the national level; just 2.1% of electric vehicles were operational in the first quarter of this year, according to the Get Connected Electric Vehicle Report Q1 2025. 

Meanwhile, in the global race for EV adoption, the United States is an outlier, especially compared to other global advanced economies, like Norway, China, and the European Union. In those regions, the YoY market share for hybrid and battery-powered electric vehicles was well over 40%, as of June/July 2025. In the U.S., though, just under 10% of all new car sales were electric vehicles.

As the data shows, the American EV segment is still maturing, despite continued investment from automakers. Yet, the federal government’s recent policy rollbacks now threaten to arrest growth in a market that remains in its infancy. 

One of the biggest roadblocks is charging infrastructure, which remains well below demand for the whole of the country, as noted by William Bowie, president of CEO Empower Construction. 

“From the East Coast to the West Coast, we lack sufficient electric charging points,” he told Invest:. In the first quarter of 2025, just one new public charging port was added per every new 42 electric vehicles registered, according to Get Connected Electric Vehicle Report Q1 2025. 

Additionally, 44% of Americans say that public charging infrastructure in their area is insufficient, as per S&P Global, and without realistic access to these stations, most buyers will not commit to purchases. This is a common hurdle for states like New Jersey, which have more electric vehicles than available charging ports.

Despite a forecasted slowdown in sales ahead of the next quarters and the loss of federal support, America’s top-performing EV markets offer a roadmap for resilience. 

California is a prime example. The state owns 48% more electric vehicle chargers than gas nozzles in adherence to strict emissions standards, which continues to drive EV growth. 

States that invest in infrastructure and enact public policies that promote broader EV adoption are likely to stay ahead of pitfalls. Yet, regions that are unable to match this level of investment will see slumps in the category, widening the national adoption gap.

Want more? Read the Invest: reports.