Automakers Lose $50 Billion on EV Push

Carmakers struggle with lower-than-expected EV demand in the US market

Published on Feb. 17, 2026

Got story updates? Submit your updates here. ›

Automakers have taken a massive $50 billion hit on their investments in electric vehicles, as the market shift to EVs has not materialized as quickly as they had hoped. Despite a growing number of EV models available, customer demand in the US has remained below expectations, leading to major write-downs and production changes at major carmakers like GM, Ford, Stellantis, and Honda.

Why it matters

The auto industry's big bet on EVs has not yet paid off, raising questions about the pace of the transition away from gasoline-powered vehicles in the US market. This could impact future investment and product plans, as well as the availability of affordable EV options for consumers.

The details

Automakers had ramped up EV production and development based on projections of rapidly growing consumer demand, driven by factors like government emissions regulations and the success of Tesla. However, high EV prices, range anxiety, and a lack of charging infrastructure have kept many US buyers loyal to gasoline vehicles. As a result, major carmakers have had to take billions in charges to account for canceled EV programs and excess production capacity.

  • In 2025, EVs accounted for 7.8% of US light vehicle registrations, down from 8% in 2024.
  • GM took over $7 billion in EV-related charges in 2025 and expects further charges in 2026.
  • Ford will have posted almost $21 billion in EV-related charges through 2027.
  • Stellantis previewed $26 billion in charges in February 2026, including $17.5 billion for canceled EV programs.
  • Honda reported $1.7 billion in EV write-offs in the 9 months ending December 2025.

The players

General Motors (GM)

A major American automaker that has taken over $7 billion in charges related to its EV investments, including canceling its Chevrolet BrightDrop electric van and repurposing a planned electric pickup plant.

Ford Motor Company

A leading US automaker that will have posted almost $21 billion in EV-related charges through 2027, including canceling its all-electric F-150 Lightning.

Stellantis

The parent company of Chrysler, Dodge, Ram and other brands, which previewed $26 billion in charges in February 2026, including $17.5 billion for canceled EV programs.

Honda Motor Company

A Japanese automaker that reported $1.7 billion in EV write-offs in the 9 months ending December 2025, and is winding down its co-developed Honda Prologue and Acura ZDX EV programs with GM.

Tesla

An American electric vehicle manufacturer that has seen growing market share in the US, though traditional automakers still dominate overall EV sales.

Got photos? Submit your photos here. ›

What they’re saying

“Carmakers aren't abandoning EVs altogether, there's still a market for them, it's just nowhere near the total takeover they thought it would be.”

— Mark Vaughn, Automotive Writer (Autoweek)

What’s next

Automakers will need to carefully reevaluate their EV strategies and production plans in light of the lower-than-expected demand in the US market. This may involve scaling back some EV programs, while focusing more on popular gasoline-powered models to shore up profits.

The takeaway

The auto industry's big bet on a rapid shift to electric vehicles in the US has not yet materialized, leading to billions in losses for major carmakers. This highlights the challenges of predicting consumer behavior and the need for a more measured approach to the transition to EVs, at least in the near term.