EVs under increasing pressure in the U.S.

For years, EVs have been in a state of grace. For different reasons, this is over now. Electric vehicles, especially in the United States, are in for more challenging times. Even more so if a certain Mr. Trump gets elected again.

There are multiple reasons for that. The rise of the electric vehicle may have had an enormous boost because of an American company called Tesla, the popularity of the full-electric vehicle has never been very high in the U.S. until now.

Just recently, GM CEO Mary Barra said that the goal of producing 1 million all-electric vehicles in North America by the end of 2025 is heavily in doubt. The production capacity target for next year was one of the last EV targets the automaker hadn’t lowered or withdrawn, as demand for EVs has not materialized as quickly as many companies, such as GM, previously expected.

Change of plans

“We won’t get to a million just because the market is not developing, but it will get there,” Barra said Monday at a virtual CNBC CEO Council event. “We’re going to be guided by the customer.”

For over two years, GM has said it would have a production capacity of 1 million EVs in China and North America by 2025. Even after changing or withdrawing several EV targets and product plans last year, the company continued to say it would install the North American capacity for EVs.

A GM spokesman said the company’s target was production capacity, while the question was whether the company would actually produce 1 million EVs in 2025. Barra did not specifically address whether she was referring to production or production capacity.

The spokesman later said the company would no longer reiterate the EV production capacity plans for 2025. The company has continually said its EV plans will be flexible to meet demand. More details about the automaker’s EV plans could come when GM reports second-quarter results on July 23.

GM’s biggest competitor in the U.S., Ford, has also been struggling to meet EV targets and persuade its customers to make the move and go for the energy transition. Nevertheless, its CEO, Jim Farley, recently wanted to strike a blow for the electric vehicle. In a long message on LinkedIn, he defended EVs and confirmed his belief that the future is electric.

Political danger Trump

However, there are more significant dangers appearing on the path to electrification. In its acceptance speech for the presidential candidate nomination at the Republican convention in Milwaukee last week, Trump once again lashed out at President Biden’s attempts to stimulate electric drive.

“I will stop this policy about electric cars on day 1 of my presidency,” Trump vowed. By doing that, “he would save the American car industry from the complete destruction it is currently undergoing”.

“This would save the American consumer thousands and thousands of dollars every month,” he added. Trump not being a supporter of electric driving is no surprise. From the beginning, he argued that stimulating electrification wouldn’t work and would only benefit the Chinese and Mexican industries at the expense of the American car industry.

Earlier this year, the American Environmental Protection Agency (EPA) lowered the limits on car emissions even further under the impulse of the Biden administration. The President wants half of the new cars in the U.S. to be electric by 2030 and has installed a premium of up to $7,500 to purchase an EV.

Elusive and provocative Elon Musk

On X, Tesla CEO Elon Musk’s own platform, he was asked for a reaction to Trump’s declaration, and it was as elusive as ever. Lately, the excentric billionaire has presented himself as an ardent supporter of Trump, donating millions of dollars to his re-election campaign.

“Many people think Tesla is surviving because of subsidies,” he answered. “That’s true for our competitors but not for us,” he added. Asked about the American car industry’s decline, he confirmed that this will inevitably happen, whatever policy is followed.