Ford wrapped up last year with its strongest U.S. sales since 2019, selling more than 2.2 million vehicles. The growth came largely from traditional gas models and hybrids, which now make up the vast majority of Ford’s sales. Hybrids, in particular, saw strong demand, while Ford’s electric vehicle sales moved in the opposite direction — falling sharply, especially toward the end of the year.
Ford’s experience reflects a broader trend. EV demand in the U.S. has cooled as higher prices, range concerns, and the loss of the $7,500 federal tax credit weigh on buyers. Analysts now expect EV growth to slow meaningfully over the next few years before picking up again later this decade.
This slowdown isn’t limited to the U.S. Even globally, EV sales are growing at a more measured pace. In China, the world’s largest EV market, growth has softened as government incentives fade, and even major players like BYD and Tesla are feeling increased competition.
In response, automakers are adjusting their strategies. Many are leaning back into gas and hybrid vehicles while becoming more selective with EV investments. At the same time, money is flowing into vehicle software, automation, and AI-driven technologies rather than aggressive EV expansion.
The takeaway? EVs aren’t going away — but for now, gas and hybrid vehicles are firmly back in the driver’s seat.
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