Electric vehicle growth in China

Electric vehicle sales worldwide are increasing, with several countries significantly outpacing the United States in adoption rates. According to the International Energy Agency, in 2025, more than half of new cars sold in China were 100 percent electric or plug-in hybrids, while the United States reached only 10 percent of new car sales.

Rapid growth in some countries

The dynamic between 2020 and 2025 shows a significant jump in electric and plug-in hybrid vehicle sales in China, from 6 percent to 53 percent, compared to an increase of only 8 points in the United States, from 2 percent to 10 percent. Nepal saw an even more dramatic rise, from 10 percent to 68 percent, while Norway increased its share from 75 percent to 97 percent.

Tesla's stock surge

In 2020, Tesla's stock rose more than 650 percent, reaching a valuation of 658 billion dollars, surpassing the combined market capitalization of Ford, General Motors, and former Fiat Chrysler Automobiles. In 2022, the Inflation Reduction Act signed by President Joe Biden provided a 4,000 dollar tax credit for used electric vehicles and a 7,500 dollar tax credit for new models.

Federal credits and their end

However, the One Big Beautiful Bill Act by President Donald Trump ended these federal credits after September 30, 2025, potentially affecting long-term commitments by manufacturers. Chinese manufacturers received twice as much public support in absolute value, and four times as much relative to their turnover, between 2010 and 2024, as their competitors in 38 other countries, including the United States, Germany, and South Korea, according to a report by the Organisation for Economic Co-operation and Development.

Advancements in battery tech

This support has led to significant advancements in battery technology, contributing to an astounding acceptance rate in China. Despite a decline in sales, China maintains a considerable industrial lead. Electric and plug-in hybrid vehicle sales in China have declined by 13 percent in the first half of 2026 compared to the same period in the previous year.

Global production gap

However, North America would only represent about 5 percent of global production of 100 percent electric vehicles in 2026, far behind China. The gap in electric vehicle adoption and production highlights concerns about the United States' position in the global automotive market.