US Falls Behind in Electric Vehicle Race, Threatening Auto Industry Competitiveness

The US auto industry is falling behind in the global electric vehicle (EV) race, with domestic EV sales growth flat in 2025, compared to a 20% increase globally. US automakers Ford and GM announced significant EV-related write-downs, reflecting losses from winding down or delaying EV plans. China, Europe, and emerging markets are accelerating EV adoption, with EVs making up a higher share of new passenger vehicle sales than in the US. This has direct implications for US automakers, suppliers, and autoworkers, potentially leading to higher prices, delayed innovations, and a risk of value creation happening elsewhere.