Electric vehicle market faces challenges in the U.S.

Antonio Filosa, CEO of Stellantis, warned at the Paris 2026 World Exhibition about an "electric vehicle bubble" in the United States, where fully electric vehicles account for just 7 percent of total car sales. He noted that the U.S. market for electric vehicles has not yet gained significant momentum, despite Europe's efforts to phase out traditional gasoline-powered cars.

U.S. EV sales drop after tax credit ends

The U.S. electric vehicle market was initially driven by government regulations and incentives, including a $7,500 tax credit for buyers. This incentive expired at the end of 2025, leading to a nearly 39 percent drop in sales of electrified cars compared to the third quarter of 2025. The market share of fully electric cars in American light vehicle sales has fluctuated, reaching a peak of 10 percent in 2024 before declining to about 9.6 percent in 2025.

Shift toward hybrid models in the U.S.

Filosa acknowledged that the U.S. transition to full electrification will likely be slower than in Europe or China but still sees it as a long-term trend. However, he described the current situation as a "bubble fueled by regulation," noting that when the government removed incentives, consumers shifted toward other types of propulsion. The end of the tax credit has caused a drop in sales, and the entire range of electrified vehicles, including hybrids and plug-in hybrids, now represents nearly a quarter of new sales.

Tesla dominates U.S. electric vehicle market

Tesla continues to dominate the U.S. electric vehicle market, capturing 54 percent of the market share, making it difficult for other manufacturers to compete. American manufacturers are struggling to gain traction with their electric pickups and SUVs, while Chinese brands face tariffs and political blockages. In this context, many companies are refocusing on their internal combustion engine core business and hybrids, waiting for charging infrastructure and economic conditions to improve.

Stellantis bets on range extenders for U.S. market

Stellantis is betting on range extender systems to attract American motorists. These systems combine a rechargeable battery with a small internal combustion engine that serves as a generator, providing reassurance for pickups and SUVs in terms of range during heavy use or long trips. Filosa stated that this strategy is driven by customer demand rather than regulation, aligning with real demand in a country where environmental regulation has relaxed and political pressure on CO2 emissions has faded.

Market volatility challenges automakers

The challenge for Stellantis and other manufacturers is to finely adjust their offerings to a market made more volatile by regulatory changes. Between fully electric cars, hybrids, and range extender models, Americans now have an increasingly wide range of options. It remains to be seen whether the share of electric models will rise again without the support of generous tax credits that had shaped this famous bubble, or if the market will remain permanently stuck around these 7 percent that are causing so much discussion today.