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Key reasons for optimism over EV adoption in the U.S.

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:

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:

Why consumers should still consider going electric

For consumers, the benefits of EVs remain clear:

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.

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