Despite over a decade of government subsidies, electric vehicles still haven’t taken off in the U.S.
Undoubtedly, the segment has grown, due mainly to the popularity of Tesla (TSLA) , but the big automakers are still losing a lot of money on their electric vehicles.
Ford, for example, has sold 6.1% more vehicles year to date than it did a year ago. However, the company did this despite selling 25% fewer EVs month to month, accelerating a declining sales trend for a segment of the company’s brand that had been experiencing growth.
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Ford announced last year that its EV division would lose about $5 billion in 2024. The $1.5 billion the unit lost in the third quarter alone was actually an 8% improvement year over year.
Meanwhile, back in 2023, General Motors said that despite losing money on EVs, it expected its EV segment to be profitable by this year.
So far this year, GM’s EV segment has been performing well, with sales more than doubling through the first five months of the year.
The company sold 62,830 EVs through May, with Chevrolet driving 37,620 of those sales. This year, Chevy’s performance alone has outstripped rival Ford, which has sold 34,132 vehicles across its all-electric lineup.
However, the U.S. is only one of three major EV markets in the world.
Europe and China have a much larger appetite for electric vehicles, but new data suggests one of those markets is also starting to slow down.
European EV market hits a major snag
Americans bought 1.5 million EVs in 2023, while the Chinese bought 8.2 million.
According to the International Energy Agency, European consumers purchased 3.2 million during the same period.
However, a new study by the oil company Shell suggests that consumer sentiment is trending in the wrong direction in Europe.
The 2025 Shell Recharge Driver Survey features responses from over 15,000 European drivers. The appetite to buy an EV among internal combustion engine (ICE) car drivers dropped to 41% from 48% last year.
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While the sentiment also fell in the U.S., the 34% to 31% decline was less dramatic.
The biggest issue for European drivers is the cost of the vehicles, as 43% of drivers cited affordability as their top issue. Despite falling battery costs, European EV prices have stagnated in recent quarters.
A strong plurality on both sides of the pond believes ICE vehicles should be phased out completely.
About 46% of ICE vehicle drivers in the U.S. agree with government policies encouraging the phasing out of ICE vehicles, while 44% of European ICE drivers feel that way.
”This research reinforces what we hear from our customers: there’s a growing disparity in the transition to electric vehicles,” said Shell VP of Mobility and Convenience David Bunch.
”While current EV drivers are feeling more confident, the relatively high cost of owning an electric vehicle, combined with broader economic pressures, are making it a difficult decision for new consumers.”
The U.S. EV market is losing government backing
President Joe Biden and his Democrat predecessor saw climate change as an existential crisis and electric vehicles as a key to combating that crisis. Obama initiated the $7,500 EV tax rebate during his term, and Biden expanded the program during his.
While it hasn’t been a big subject for Trump this time around, he did call some of the rhetoric around climate change a hoax when he first ran for president back in 2015.
EVs just aren’t as popular in the U.S. as they are in China and Europe.
However, hybrid vehicles, which are mainly ICE engines with a small battery backup, are gaining in popularity.
Ford hybrid sales increased nearly 30% to 22,719 vehicles in May. Year to date, hybrid sales are up more than 31%.
According to Bunch, hybrids could play a key role in ultimately decarbonizing our driving experiences.
“With the right policies and industry collaboration, we can make the transition affordable for consumers and attractive for investors. But more must be done to stimulate demand and ensure no one is left behind in the shift to cleaner transport,” he said.
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