Why It’s More Important Than Ever for OEMs to Promote EVs
Just hours into his term of office, Donald Trump signed an executive order entitled “Unleashing American Energy”. One of the directives contained within that order was to “eliminate the ‘electric (EV) vehicle mandate’ and promote true consumer choice…and [consider] the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs…”
The shift from the previous administration on this issue could not be starker.
Consumers, it seems, were well aware of the President’s sentiments, and their actions prior to his resuming power signaled a recognition that tangible policy shifts were anticipated. In the 11 weeks between election day and inauguration day, vehicle movement for (non-Tesla/Rivian) EVs jumped by 11% compared to the prior period. Gas-powered vehicles, meanwhile, fell by 3%.
Now that Trump is in office, EV gains have reversed. In the eight weeks since Trump took office, EV movement has fallen back by 17% at the same time that gas-powered vehicles are flat. It is noted that Tesla deliveries are anticipated to miss estimates this quarter, and the company’s stock has taken a huge hit over the course of 2025.
*Non-Tesla/Rivian - Source: Cloud Theory 2025
In the longer run, it is likely that policy intentions will lead to real-world implications. But in the more immediate term, not much has actually changed. The $7,500 federal tax subsidy to purchase an EV is still in place. OEM pullbacks on production aspirations and investments have had more to do with waning demand and profitability concerns rather than governmental influence or decrees. And consumers still have a growing set of EV choices to pick from as manufacturers continue to take steps toward a more electrified future.
So, the recent sales declines since President Trump came into power are likely attributable to marketplace perceptions rather than policy change realities (and in the case of Tesla, also reflective of some level of backlash against Elon Musk’s visibility related to his DOGE efforts). Articles and online speculation in social media are fueling uncertainty as to the present and future state of EVs. But unraveling provisions within current programs that were passed by Congress and signed by President Biden cannot be eliminated by executive order (hence the language to “consider” the elimination of subsidies). They must be rescinded by a bill to countermand the current law.
This isn’t to say that such an action won’t be taken. There are plenty of powerful forces aligned to do just that, from Musk to oil lobbyists. But doing so will take time, and may not be able to fully rescind the laws that are currently in place. What is clear is that the positive realities of buying an EV are still ahead of whatever perceptions exist that are currently keeping consumers from going in that direction.
For OEMs still interested in making progress on EVs (which is just about all of them), now is the time to communicate to consumers that the buying environment remains intact and that the benefits of these vehicles are still in place.
