Xin Lang Ke Ji·2025-12-19 02:44Core Viewpoint - The cancellation of federal electric vehicle tax credits by the Trump administration has plunged the U.S. electric vehicle industry into a downturn, leading to a significant drop in sales and a shift in focus among traditional automakers towards hybrid and gasoline vehicles [1][2][4]. Group 1: Impact of Policy Changes - The federal electric vehicle tax credit, which provided $7,500 for new electric vehicle purchases and $4,000 for used ones, was abruptly terminated, causing a dramatic 30.3% year-on-year drop in electric vehicle sales in October [2][3]. - In November, electric vehicle sales further declined by 40% year-on-year, with a total of 76,000 units sold, marking a return to early 2022 sales levels [3][4]. - The market share of electric vehicles fell to 5.1% in November, down from a peak of 12.4% in September, indicating a severe contraction in consumer demand [3][4]. Group 2: Traditional Automakers' Response - Major automakers like General Motors and Ford are scaling back their electric vehicle ambitions, shifting focus to hybrid and gasoline models due to the financial losses in their electric vehicle divisions [9][10]. - Ford announced a $1.95 billion asset write-down, with $8.5 billion attributed to its electric vehicle division, and is now prioritizing hybrid models and small electric vehicles [11][12]. - General Motors has delayed the production of electric trucks and reduced its electric vehicle production targets, citing changes in government policy and a slowdown in electric vehicle adoption [10][11]. Group 3: Market Dynamics and Consumer Behavior - The average price of electric vehicles remains significantly higher than gasoline vehicles, with a price gap of 25%, exacerbated by the removal of tax credits [6][7]. - Consumer concerns about charging infrastructure and the practicality of electric vehicles persist, with a lack of charging stations and high insurance costs further deterring potential buyers [6][7]. - The U.S. electric vehicle market is heavily reliant on government incentives, and the abrupt policy changes have led to a loss of consumer confidence and demand [4][5]. Group 4: Comparison with China - In contrast to the U.S. market, China's electric vehicle sales reached 11 million units last year, accounting for 40% of global sales, highlighting a significant disparity in market performance [4][5]. - The U.S. electric vehicle industry faces structural issues, including a lack of policy continuity and predictability, which hampers long-term planning for automakers [5][6]. - Traditional automakers in the U.S. are recognizing the technological advancements of Chinese electric vehicle manufacturers, which are perceived to be ahead in terms of cost, quality, and digital integration [14][15].