Trump tanked EV sales, but car shoppers have found another way to save fuel
Bloomberg
Bloomberg· 2 min read
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🗞️ Driving the news: Electric vehicle (EV) sales in the U.S. have tumbled since the Trump administration eliminated the $7,500 federal EV tax credit and rolled back fuel economy standards
• First-quarter 2026 EV sales dropped 27% compared with 2025, forcing automakers like Toyota, Honda, Tesla, and Stellantis to cancel models or take multi-billion-dollar write-offs
🔭 The context: Consumers haven’t returned to traditional gas-powered vehicles. Instead, demand has surged for hybrids, which combine electric and gasoline power
• Hybrid sales have grown over 80% since 2023, now accounting for 14.1% of new vehicle sales, nearly three times the share of EVs
• Popular models include the Toyota Highlander, Hyundai Sonata, and Honda CR-V hybrids
• Automakers are pivoting accordingly: Ford replaced its fully electric F-150 Lightning with a hybrid version, and Ram’s planned all-electric 1500 pickup has been switched to a hybrid
🌍 Why it matters for the planet: Although hybrids reduce fuel consumption and emissions compared with pure gas vehicles, they are not a full climate solution
• The U.S. EV slowdown contrasts sharply with global trends: EVs represent over 50% of new vehicle sales in China and roughly 25% worldwide
• The hybrid surge indicates that American consumers are seeking practical, cost-conscious ways to cut fuel use while hedging against expensive or unfamiliar EV technology
⏭️ What’s next: Automakers are adjusting production strategies to meet the hybrid boom while keeping EV programs alive for long-term growth
• Analysts note that American car buyers remain interested in electrification but are prioritizing value, familiarity, and incremental fuel savings over full EV adoption
💬 One quote: “For a lot of people, hybrids add a layer of fuel savings without changing anything else in their life. I think that’s a heck of a value proposition.” – Joseph Yoon, Edmunds
📈 One stat: Hybrid vehicles now exceed 2 million units per year in sales, up more than 80% from 2023, making them the fastest-growing segment in the U.S. market
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