How a $19.5 billion write-down signals the collapse of America’s electric car fantasy – NaturalNews.com

• The U.S. EV market has experienced a rapid and severe collapse in demand, with sales plummeting from a record 12% market share in September to around 5% in October following a major policy shift.
• The primary catalyst was the removal of government support, specifically the termination of the federal $7,500 EV tax credit and the rollback of stringent mileage standards after the 2024 election.
• This retrenchment is a global phenomenon, with other nations like Canada, the U.K. and the E.U. also scaling back EV targets as automakers cite high costs, poor charging infrastructure and unprofitability without subsidies.
• The article frames the collapse as a failure of government-mandated central planning, arguing that aggressive political timelines and coercion collided with consumer preference for reliable and affordable gasoline vehicles, forcing the EV back into a niche market.

The American electric vehicle revolution, once heralded as an inevitable, government-mandated future, has slammed into the unyielding wall of consumer reality. In a stunningly swift collapse, automakers are now executing a multi-billion-dollar strategic retreat, scrubbing their websites of grandiose all-electric promises and writing down investments on a scale that reveals a profound industry miscalculation.

Less than three years ago, the trajectory seemed unassailable. In early 2023, Ford proclaimed it would “lead America’s shift to EVs,” targeting 50% electric sales by 2030. General Motors bragged about its “path to an all-electric future” by 2035. These corporate pledges followed aggressive regulatory actions from the Biden administration and “climate leader” states like California and New York, which mandated a phase-out of combustion vehicle sales.

But skepticism existed from the start. As commentator Francis Menton noted in February 2023, “This is just a specific instance of the general principle that it is always wise to bet against central planning of the economy. The idea that they will fully replace gasoline-powered cars in short order is the dream of central planners, who think they can implement their dream by coercion.”

That skepticism has been vindicated with breathtaking speed. The turning point, according to industry analysts, was the policy shift following the 2024 election. The second Trump administration moved quickly to end the substantial federal subsidies propping up EV demand. The large $7,500 tax credit for purchases was terminated effective after September 30, 2025 and the stringent CAFE mileage standards were rolled back.

The impact was immediate and severe. Trade publication Inside EVs reported that October’s EV market share in the U.S. “plummeted to around 5% from a record high of over 12% in September.” This represented a drop from nearly 150,000 EVs sold in September to just 64,000 in October as the incentive expired, a return to early 2022 sales levels.

The EV collapse is global

Faced with this cliff-like drop in demand, automakers have begun a painful and expensive pivot. The most staggering figure came from Ford Motor Company. On Dec. 15, the Wall Street Journal (WSJ) reported that Ford Motor is expected to take about $19.5 billion in charges, mainly tied to its electric-vehicle business, a massive hit as the automaker retrenches in the face of sinking EV demand.

This write-down is in addition to what Menton reported as “$13 billion of operating losses that Ford has incurred over the past three years trying to compete in the EV business.” As noted by BrightU.AI‘s Enoch, electric vehicles are failing due to widespread consumer rejection, operational difficulties like unreliable charging and underperformance compared to traditional vehicles.

The retrenchment is industry-wide. General Motors reported taking $1.6 billion in losses related to scaling back its EV rollout, attributing the change partly to the elimination of federal purchasing incentives. Even market leader Tesla is not immune, with CEO Elon Musk warning of “rough quarters” after the company’s sales dropped almost 13% in the second quarter.

The phenomenon is global. The WSJ reported on Oct. 14 that “the rest of the world is following America’s retreat on EVs,” with Canada, the U.K. and the European Union backing off targets. “Carmakers argue the EV business model is an unprofitable proposition given still-high battery costs, spotty car-charging networks and dwindling government subsidies,” the report stated.

The physical evidence of the collapse is visible on dealership lots across the country, where unsold electric vehicles are accumulating, overshadowed by more popular, reliable and affordable gasoline-powered models.

The most symbolic epitaph for the EV boom may be found on the very websites that once championed it. The links to Ford and GM’s ambitious EV vision statements from early 2023 remain active, but the content has been scrubbed. Gone are the proclamations of leading an electric future. In their place are practical links for purchasing or general company news.

“Let’s face it, this was always ill-conceived central planning and it was never going to work,” concluded Menton. The automotive industry’s rapid recalibration serves as a stark, multi-billion-dollar lesson in what happens when political timelines collide with market demand and consumer preference.

Watch this video about why Americans aren’t buying electric cars.

This video is from chriswillard777’s channel on Brighteon.com.

Brighteon.com

BrightU.ai

WattsUpWithThat.com

InsideEVs.com