The EV pullback: Why these 5 automakers are retreating from big plans

On Sept. 5, Volvo became the latest automaker to deliver sobering news about the state of electric vehicles, saying it would miss its goal of selling an all-electric fleet within six years. EVs had been gathering momentum and excitement for years among environmentalists, carmakers and even skittish consumers who prompted auto industry giants to put forth grand plans for EVs.

But the EV market has always been tricky, balancing consumer demand, lowering higher prices, rolling out more charging stations and meeting regulations. These factors combine to create the classic “chicken and egg scenario”: What should come first to spur the others? The result in the past six months has been sweeping pullbacks by carmakers, for now. Here we highlight five of those manufacturers and what has changed for them.

Volvo

Grand plan — Sell EV-only vehicles by 2030.

Revised plan — Volvo now expects at least 90 percent of its output to be both electric cars and plug-in hybrids by 2030.

The reason — “It is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds.” — Jim Rowan, Volvo CEO

State of EV sales — Volvo sold 10,563 plug-in cars in the second quarter of this year.

General Motors

Grand plan — Starting in 2018, GM had said it would sell only EVs by 2035 ad electrify 50 percent of its fleet by 2030.

Revised plan — GM has pared back its ambitions significantly. In July, it said it was delaying the opening of an EV truck factory in Michigan for the second time, to mid-2026, and halting plans for a first EV model for its Buick brand this year.

The reason — Skittish consumer demand. “As excited as we are about our portfolio, we are committed to growing responsibly and profitably in any demand environment,” GM CEO Mary Barra said in July.

State of EV sales — Of the 21,930 electric vehicles delivered by GM in the second quarter, 20,556, or nearly 94 percent, were Ultium-based EVs.

Ford

Grand plan — Ford said in recent years it would commit as much as 40 percent of its capital budget to manufacturing vehicles, including an all-electric, three-row SUV.

Revised plan — The capital spending plan was reduced to 30 percent of the budget, and its three-row SUV was scrapped in August while delaying production on a new electric truck by 18 months to 2027.

The reason — No profits in sight. “The competitive nature of the market is changing globally,” Ford Chief Financial Officer John Lawler told investors on a conference call Aug. 21. “That means these vehicles need to be profitable, and if not, we will pivot and adjust and make those tough decisions.”

State of EV sales — Ford sold 23,957 EVs in the second quarter of 2024, a 61 percent increase from the year-ago period.

Tesla

Grand plan — Industry leader Tesla under CEO Elon Musk has been nothing short of ambitious, touting plans to build the world’s largest charger, network, a self-driving EV taxi, an unrivaled Cybertruck and a new affordable sedan model.

Revised plan — In July during a second-quarter earnings call, Tesla said it was pushing back the unveiling of its so-called Robotaxi to October from August while reporting its lowest profit margin in five years.

The reason — “Elon is great at dangling the carrot in front of investors, but new ideas tend to be long on vision, but short on execution,” David Wagner, head of equity and portfolio manager at Tesla investor Aptus Capital Advisors, told Reuters. Musk has consistently blamed regulations for stalled plans.

State of EV sales — Sales of Tesla’s electric cars fell 5 percent in the second quarter, to 444,000 vehicles compared with the second quarter of 2023.

Mercedes

Grand plan — To sell electric-only vehicles by 2030. led by the popular EQS sedan.

Revised plan — Mercedes now says it will continue manufacturing cars with “electrified internal combustion engines” well into the next decade.

The reason — The automaker has stopped development of the MB.EA-Large platform due to disappointing sales of the electric cars it currently offers, according to German newspaper Handelsblatt. The platform was meant to support support the EQS and EQE sedans and SUVs, as well as the S-Class, GLS and GLE models.

State of EV sales — Mercedes sold 45,800 electric vehicles in the second quarter of 2024, down 25 percent year over year.

CORRECTION: An earlier version of this story incorrectly identified Mercedes as a Volkswagen brand.