Ford CEO Warns Trump Policy Cuts US EV Industry Demand By Half

Ford Motor Company CEO Jim Farley has issued a stark warning about the future of electric vehicles (EVs) in the U.S., attributing a potential sharp decline in demand to President Trump's policy changes, including the expiration of the $7,500 federal EV tax credit and the rollback of emissions standards. Farley predicts EV sales could drop from around 10% of the market to as low as 5%, as automakers reconsider their strategies, with some delaying EV launches and shifting focus back to hybrids and internal combustion engine vehicles. Despite this, Farley sees potential in "partial electrification" such as hybrids and plug-in hybrids, which he believes American consumers are increasingly embracing. The policy shifts have caused ripple effects throughout the industry, including an oversupply in battery production and delays in EV-related projects. Farley highlighted that consumers are hesitant to buy expensive EVs, typically costing around $75,000, despite their advantages. Overall, Ford anticipates a smaller but still vibrant EV industry moving forward, with a strategic pivot toward more affordable and hybrid electric models.