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Published: Nov 01, 2023 8 min read
Photo-illustration of a hand reaching into a pile of electrical cords, while holding a car.
Money; Getty Images

The EV revolution is losing momentum: After electric car sales soared in 2022, interest among buyers has underwhelmed and plans for a rapid transition away from gas-powered cars could be in jeopardy.

While the EV market has grown in 2023, sales aren't rising as fast as expected, even with new model launches and price cuts and generous tax credits lowering costs for buyers. Automakers are taking notice and acting accordingly.

In just the last few weeks, EV leader Tesla slashed its prices once again; Ford reduced production of its F-150 Lightning electric pickup truck and postponed $12 billion of EV spending; Mercedes-Benz CFO Harald Wilhelm described the EV market as a “brutal space” as the company continues to discount vehicles; General Motors delayed three model launches and backed off a public goal of producing 400,000 EVs by the middle of next year; and Honda announced it was ending plans with GM to jointly develop affordable EVs.

Over at Toyota, which has prioritized hybrids over EVs, Chairman Akio Toyoda told reporters that “people are finally seeing reality.” Despite EV tax credits of up to $7,500, fewer Americans are ready to switch to EVs than automakers or government officials thought.

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Automakers losing money on EVs