U.S. EV Boom Fades as Detroit's Big Three Write Off Over $50 Billion

As enthusiasm for the U.S. electric vehicle (EV) market sharply cooled, Detroit’s Big Three automakers—General Motors, Ford, and Stellantis—suffered significant setbacks in the fourth quarter of 2023, reporting a 30% year-over-year decline in EV sales and collectively announcing over $50 billion in asset write-downs related to electric vehicles. The sales slump was primarily driven by the expiration of the $7,500 federal EV tax credit, combined with weak market demand and relaxed fuel efficiency requirements. General Motors has continued cutting EV production; Ford is revising its strategy and plans to launch a low-cost electric pickup truck by 2027; Stellantis, meanwhile, has sold stakes in its battery business and admitted it misjudged the pace of the energy transition. Several automakers have been forced to cancel projects, lay off workers, and refocus their efforts on internal combustion engine vehicles.