Carmakers lose $65bn as EV strategies miss consumers

Major automotive brands are confronting a consumer trust crisis as electric vehicle adoption stalls across global markets. 

The shift in buyer behaviour and cooling of the market at the start of 2026 cost carmakers at least US$65bn in the past year.

In February 2026, Stellantis took a US$26bn charge to scrap some fully electric models and revive the 5.7-litre "Hemi" V8 engine in the US. 

The company also decided to revive diesel engines for several European models.

The write-off triggered a share sell-off that cut its market value by about US$6bn at the time.  

The company, which owns the Peugeot, Fiat and Jeep brands, had previously set a goal that electric vehicles would account for all of its European passenger vehicle sales by 2030 and half the total in the US.

Executives now expect these vehicles to account for 5%. The repositioning of the brand follows changes in climate policy in the US.

Consumer expectations unmet

According to Bernstein analyst Stephen Reitman, Stellantis and other carmakers left consumers behind as they tried to replicate the early success Tesla had when it revolutionised the market.

He said that their shortcoming was failing to offer vehicles that met drivers' price and range expectations, adding that "charging infrastructure was also lacking”.

Stephen explained: "Everyone got caught up in the kind of euphoria of 'look at the valuations Tesla was getting'. And they didn't bring the customers with them." 

Ford disclosed a US$19.5bn writedown in December 2025 as it cancelled its electric F-150 pick-up truck. In February, Ford Chief Jim Farley told investors that the regulatory environment globally was the "wildcard" as the carmaker refined its strategy.

"There's enough choice around the world on electrification for us to cherry-pick customers' choices," said Jim. Volkswagen, Volvo Cars and Polestar have all suffered hits to their electric vehicle programmes over the past year.

Market conditions shift

Major markets have also cut subsidies for electric vehicles. For example, Germany phased out purchase subsidies at the end of 2023 and the US ended a US$7,500 federal tax credit in September 2025, causing a 47% drop in market share.

China introduced a purchase tax for electric vehicles in early 2026. 

In January 2026 General Motors reached a writedown US$7.6bn on its electric operations, though Chief Executive Mary Barra says its "end game" would remain electric vehicles.

At the time of this writedown activity, analysts warn there could be more writedowns for Stellantis ahead as the group aims to improve its US market share with a renewed focus on hybrid and petrol models. 

"The EV market is dramatically changing," says Noriya Kaihara, Honda's Executive Vice President.

"So we would need to monitor our sales volume trends and then we might have to take some [further] actions if needed." The used electric vehicle market has grown, with sales surging nearly 46% year on year.

Rapid depreciation has created a mistrust of valuation forecasts for leasing companies. Manufacturers have promoted future models with solid-state batteries, causing consumers to delay purchases of current technology.

The new car market is struggling while the used market experiences growth. This pattern could show that buyers remain interested in electric vehicles at lower price points.