End of EV euphoria triggers $65bn hit for carmakers
Financial Times
February 15, 2026
AI-Generated Deep Dive Summary
The end of the electric vehicle (EV) euphoria has dealt a significant blow to automakers, with an estimated $65 billion hit impacting the industry. As global demand for EVs fails to meet expectations and competition intensifies, manufacturers are reevaluating their strategies, particularly in key markets like the United States. This shift marks a pivot back to traditional internal combustion engine (ICE) vehicles and hybrids, signaling a broader reassessment of the push toward electrification.
TheEV market was once seen as a growth opportunity, with automakers investing heavily in EV production and infrastructure. However, factors such as supply chain disruptions, rising costs, and slower-than-expected consumer adoption have cast doubt over the viability of this strategy. In response, major players are scaling back their EV plans and re-focusing on ICE vehicles, which remain popular among many buyers due to lower upfront costs and longer driving ranges.
This strategic pivot is particularly evident in the U.S. market, where preferences for SUVs and trucks dominate. Carmakers are now prioritizing hybrid and petrol-powered vehicles, which offer a balance between emissions reduction and performance. This shift aligns with growing pressure from investors and stakeholders to stabilize profits and adapt to changing consumer trends.
For business readers, this reorientation underscores the importance of flexibility in the automotive industry. As EV adoption varies by region and
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Originally published on Financial Times on 2/15/2026