The EV market in the U.S. took a big hit in 2026. Honda discontinued the Prologue and stopped development of the O Series SUV and sedan and the Acura RDX. That is notable because the Prologue was decently popular - Honda sold 33,000 of them in 2024 and 39,000 in 2025. Tesla ended production of the Model S and Model X.
Volkswagen stopped making the ID.4 in the U.S. and paused the ID Buzz, while Volvo pulled the EX30 and EX30 Cross Country. Hyundai pulled the Ioniq 6, and Nissan skipped the 2026 Ariya. Even the Sony-Honda joint venture to build Afeela EVs was abandoned, and Polestar was effectively banned from selling new vehicles in the U.S. due to Chinese tech restrictions.
All of this is happening as overall EV sales shrink. In the second quarter of 2026, Americans bought 247,226 EVs, about 5.8% of all vehicle sales - down 20.5% from the same quarter in 2025.
The biggest reason: the $7,500 federal tax credit ended in fall 2025. That made EVs suddenly more expensive for buyers, and the effect was immediate. EV sales in the fourth quarter of 2025 dropped 36% compared to the same period in 2024. The slide continued into 2026.
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But it is not just the tax credit. Automakers point to several other factors. U.S. tariffs on imports make some models too costly to sell here.
Chinese competition is fierce, especially in the tech that goes into EVs. And the U.S. government has banned vehicles that use certain Chinese-connected technology, which hit Polestar. Changing consumer tastes also played a role.
Honda cited U.S. import duties and rivalry from Chinese automakers as reasons for halting development of the O Series and Acura RDX. The Prologue, built at GM's plant in Mexico, was also discontinued.
Each automaker has its own calculus. But the overall picture is clear: the EV market in the U.S. is in a rough patch.
Not all the news is grim. Some automakers are still betting on EVs. Rivian is launching a new model, the R2, into the U.S. market.
Overall, signs of a slow recovery are underway. Volkswagen expects to bring the ID Buzz back in 2027.
Polestar said it will "continue to support customers, including providing access to its service network."
The question is which companies will adjust best. Some, like Rivian, are pushing forward. Others, like Polestar, are stuck selling off remaining inventory and supporting existing customers.
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