The future is still bright for electrified vehicles in the U.S., according to industry experts, despite President Donald Trump’s executive order in January signaling a significant shift in the federal government’s stance on EVs.
The order, “Unleashing American Energy,” appears to dismantle several policies implemented by the previous administration to promote EV adoption and reduce greenhouse gas emissions. While the changes may slow the move toward electric vehicles, they’re unlikely to completely derail it. Key reasons for optimism include market forces, state-level initiatives and ongoing advancements in technology.
In December, Cox Automotive predicted EVs would account for approximately 10% of the market total in 2025, up from roughly 7.5% in 2024. Though the forecast acknowledged that potential policy changes could affect the market, it underscored that consumers are still looking to reduce their dependence on gasoline, especially through options like hybrid-electric vehicles.
“… Hybrids are likely to become even more important as a steppingstone for consumers while manufacturers hedge their bets on emissions targets and fuel efficiency standards,” the Cox Automotive forecast said. “All told, we feel electrified vehicles will move into the mainstream in 2025, with one in four new vehicles sold powered by electricity in some way.”
Key policy changes
The president’s executive order removed several federal policies that had been aimed at accelerating EV adoption. These include:
- Reversing EV sales targets – The federal goal for 50% EV sales by 2030 is no longer in place, allowing market demand to dictate growth.
- Reevaluating emission standards – The government is reconsidering stringent regulations on tailpipe emissions, which could slow the shift from gasoline-powered vehicles.
- Pausing federal EV infrastructure funding – Federal grants for public charging stations have been halted, raising concerns about expanding charging networks.Potential repeal of EV tax credits – The $7,500 federal tax credit for EV buyers is under review, which could affect affordability.
Challenges and opportunities for EV manufacturers
While these policy shifts may present hurdles, automakers remain committed to electrification. Companies like Kia, Ford, GM, Tesla and Rivian have already made substantial investments in EV technology and manufacturing. Their dedication is driven by several key factors:
- Consumer demand is rising – Even without federal mandates, EV adoption is increasing due to lower operating costs, improved performance and growing environmental awareness.
- State policies remain strong – California and other states continue to push aggressive EV incentives, including rebates and infrastructure expansion, ensuring ongoing support for the industry.
- Private sector innovation – Automakers and tech companies are investing billions in battery advancements, making EVs more affordable and efficient. Tesla’s next-generation batteries and GM’s Ultium platform are prime examples of how the industry is moving forward regardless of federal policy changes.
- Global market forces – Many automakers are designing vehicles for a global audience, where EV regulations and incentives remain strong, ensuring that the U.S. market will not be left behind.
Why consumers should still consider going electric
For consumers, the benefits of EVs remain clear:
- Lower operating costs – EVs have fewer moving parts, leading to reduced maintenance expenses compared to gasoline vehicles. Charging an EV is still cheaper than refueling a gas-powered car in most areas.
- Expanding charging networks – Despite federal funding pauses, private companies like Tesla, Electrify America and ChargePoint are rapidly expanding charging infrastructure, making long-distance EV travel easier.
- State incentives and rebates – Many states still offer rebates, tax credits, and reduced registration fees for EV owners, helping to offset potential losses from federal tax credit reductions.
- Resale value and longevity – With battery technology improving, EVs are retaining more of their value, making them a smart long-term investment.
The road ahead
While federal policy changes create uncertainties, the EV revolution is far from slowing down. Consumers continue to embrace electric vehicles, automakers are investing heavily in new technologies, and state and private sector initiatives are ensuring continued growth.