Electric Vehicle Market Shrinks in the US
The US electric vehicle (EV) market has been shrinking, with several major automakers pulling the plug on their electric offerings. The decline of the US EV market is attributed to various factors, including the end of the $7,500 federal tax credit, tariffs, changing consumer tastes, costs, company priorities, and regulatory action.
Why Are Automakers Pulling Out of the US EV Market?
The US EV market has been experiencing a decline in sales, with the second quarter of 2026 seeing a 5.8% market share. Despite this, Americans are still buying EVs, and new models are entering the market. The Rivian R2 is one such example.
Discontinued Electric Vehicles
- Honda Prologue: The Honda Prologue, a mid-sized electric SUV, is officially dead. The company confirmed the decision, removing the last all-electric vehicle from its US portfolio.
- Afeela: The Afeela, a joint venture between Sony and Honda, never made it into production. The joint venture gave up on the two Afeela-branded EVs in March 2026.
- Acura RDX: Honda stopped development of the Acura RDX, an electric SUV, in March 2026 as part of a major overhaul of its EV plans.
- Honda O Sedan: Honda also stopped development of the Honda O Sedan, an electric car, in March 2026.
- Hyundai Ioniq 6: Hyundai decided to no longer sell the Ioniq 6 in the US, a decision likely tied to tariffs.
- Nissan Ariya: Nissan decided not to produce a 2026 model year of its all-electric Ariya SUV for the US market.
- Polestar: Polestar, a Swedish EV maker owned by Geely, was forced to leave the US due to the country's ban on Chinese-connected vehicle technology.
- Tesla Model S and X: Tesla announced the end of production for the Model S and X to make way for its future plans, which include AI, autonomy, and robots.
- Volkswagen ID. 4 and ID. Buzz: Volkswagen pulled back on the ID. 4 electric SUV and the ID Buzz, with the ID. 4 being shifted to high-volume vehicles and the ID Buzz being put on a hiatus.
- Volvo EX30 and EX30 Cross Country: Volvo decided to pull its subcompact EX30 and EX30 Cross Country variant from the US market, citing production ending after the summer.
The decline of the US EV market is a significant concern for consumers and automakers alike. As the market continues to evolve, it remains to be seen which electric vehicles will remain on the market and which will be discontinued.