America’s retreat from electric vehicles is raising existential concerns for its auto industry, as Chinese manufacturers accelerate leadership in technologies shaping the future of mobility.
Stellantis crystallized those fears after booking a $26 billion charge tied to restructuring and EV pullbacks, sending shares plunging and exposing misjudged energy-transition timelines.
U.S. automakers are pivoting back to trucks and SUVs, while Chinese rivals double down on EVs, scaling globally with cost advantages and rapidly improving technology.
Legacy brands have absorbed billions in EV losses, squeezed by fading tax credits and weak demand, even as Chinese competitors expand exports across Europe and emerging markets.
China’s global auto share has surged nearly 70% in five years, powered by state backing, vertical integration and speed, prompting fears of price undercutting worldwide.
Washington has responded with 100% tariffs on Chinese EVs, yet Chinese brands continue gaining traction abroad, pressuring U.S. firms representing roughly 5% of GDP.
EV momentum has also stalled domestically, with sales falling sharply after incentives ended and automakers announcing sweeping write-downs and production cuts.
Experts warn the threat isn’t EVs alone, but China’s scale, integration and execution speed, advantages increasingly redefining global automotive competition.
