The largest US automakers — General Motors, Ford, and Stellantis — announced combined write-downs of over $50 billion amid a sharp decline in demand for electric vehicles, The Wall Street Journal reports.
Sales of electric vehicles in the US fell by more than 30% in the fourth quarter of 2025 after the law allowing buyers to receive a $7,500 tax deduction after purchasing an electric vehicle expired in September.
The decline in demand affected Tesla's Cybertruck and Ford's electric pickup, according to the publication.
Stellantis recorded the largest write-down of over €20 billion. The company announced the sale of its stake in the battery business and a revision of its production plans. The head of the company, Antonio Filosa, stated that the pace of the energy transition had been overestimated and "distanced us from the real needs of consumers."
Ford also cut programs related to electric vehicles and abandoned some joint battery production projects. General Motors dropped several projects for electric motor production and is repurposing its facilities for the production of internal combustion engine vehicles. Additionally, the company laid off thousands of employees at its plants in Michigan, Ohio, and Tennessee.
According to Atlas Public Policy, last year in the US, over $20 billion in previously announced investments in electric vehicle and battery production were canceled or reduced, leading to the first net decline in announced investments in the sector in several years.
Even with subsidies in place, demand was lower than expected, the article states. For comparison, in 2022, the net volume of announced investments was $75.4 billion, in 2023 it was $58.4 billion, in 2024 it was $23.3 billion, and in 2025 the figure turned negative — minus $20.1 billion.
Meanwhile, outside the US, the market continues to grow. China's BYD surpassed Tesla to become the largest seller of electric vehicles in the world, delivering over 1 million cars outside of China last year — double the amount from the previous year.
According to Reuters, global electric vehicle sales in January 2026 fell by 3% to nearly 1.2 million cars, pressured by declining demand in China and the US following subsidy cuts and changes in regulatory policy. In North America, sales in January dropped by 33% to about 85,000 vehicles, the lowest level since early 2022, the publication states.
