US EV Investments Slide 30%: China Dominates Global Sales
US EV investments dropped 30% to $8.1 billion in Q3 2025 after the Trump administration removed tax credits and rolled back emissions rules. This slump in US EV investments led to the cancellation of $7 billion in planned projects amid policy uncertainty.
Automakers felt the impact: GM expects a $1.6 billion EV-related loss this quarter, while Ford pivots to partial electrification. Volvo’s CEO warns that regulatory shifts could let China widen its lead in the EV market.
China delivered a record 2.1 million electric vehicles in September, accounting for two-thirds of global EV sales. AlixPartners cut its US EV sales forecast to just 7% of national car sales by 2026—half its prior estimate.
In Europe, manufacturers are lobbying to ease the 2035 ban on internal combustion engines. Observers say stable policies are crucial to attract funding, maintain competitiveness and secure market share.
Neutral
The sharp drop in US EV investments and policy rollbacks are primarily sectoral, affecting automakers and EV projects rather than the broader cryptocurrency market. As no major crypto tokens are directly tied to these events, trading activity in mainstream cryptocurrencies is unlikely to shift. Short-term volatility should be minimal, and long-term market fundamentals for crypto remain unaffected by automotive regulatory changes.