Group 1 - The Trump administration's policies favoring gasoline vehicles have led to a significant decline in electric vehicle (EV) investments in the U.S., raising concerns about the country's competitiveness against China in the global EV race [1][2] - Since January, the Trump administration has canceled tax incentives for EV purchases and proposed the repeal of greenhouse gas emission regulations, contrasting sharply with the previous Biden administration's support for the industry [2][3] - Investment in the U.S. EV sector dropped nearly one-third year-on-year to $8.1 billion in the last three months, with approximately $7 billion in planned investments being canceled from April to September [2] Group 2 - Analysts predict that the shift in U.S. policy will reshape the industry landscape, potentially strengthening China's position in the EV market and undermining the EU's resolve to implement a ban on internal combustion engine sales by 2035 [2] - Forecasts for U.S. EV sales have been downgraded, with pure electric vehicles expected to account for only 7% of sales by 2026, significantly lower than previous estimates [4] - By 2030, the projected market share for pure electric vehicles in the U.S. is only 18%, compared to 40% in Europe and 51% in China, indicating a substantial lag [4] Group 3 - The renewed focus on internal combustion engine vehicles is seen as beneficial for the industry in the short term, potentially generating billions in revenue, but poses long-term risks as Chinese companies continue to advance in EV development [5] - Traditional U.S. automakers face a dilemma as they profit more from gasoline vehicles while fearing being outpaced by Chinese competitors in the EV sector [4][5] - Ford reported a $3.6 billion loss in its EV business over the past nine months, while its gasoline and hybrid vehicle operations generated a profit of $2.3 billion, highlighting the financial challenges in the EV market [6]

Core Viewpoint - The article highlights the growing gap between the electric vehicle (EV) industries in the U.S. and China, exacerbated by the recent policy shifts under the Trump administration, which have led to a significant decline in U.S. EV investments [1][3]. Investment Trends - U.S. EV-related investments fell nearly one-third year-on-year in Q3, dropping to $8.1 billion [1]. - Approximately $7 billion in EV investment plans were canceled between April and September [1]. - In contrast, Chinese EV supply chain companies invested about $16 billion overseas last year, surpassing domestic investments for the first time since 2014 [7]. Market Predictions - AlixPartners predicts that by 2026, pure electric vehicles will account for only 7% of total U.S. sales, a significant reduction from previous forecasts [3]. - By 2030, the share of pure electric vehicles in the U.S. is expected to be 18%, compared to 40% in Europe and 51% in China [3]. Industry Responses - Traditional automakers face a dilemma due to the Trump administration's support for gasoline engines, as they seek profits from gasoline vehicles while fearing competition from Chinese firms like BYD and Geely in the EV market [3]. - Stellantis announced a record investment of $13 billion in the U.S. over the next four years to increase production of gasoline and hybrid vehicles [4]. - Ford's CEO described the revival of gasoline engines as a "multi-billion dollar opportunity," despite the company's EV business losing $3.6 billion in the first three quarters of the year [5][6].