News
As many global automakers roll back on their EV strategies in the face of an industry slowdown, the global market is showing a strong preference for affordable EVs over more expensive models.
After the end of the US federal subsidy and the Trump administration’s reversal of EV-friendly legislation, many automakers are suffering heavy losses as the market pivots away from pure EVs and back to hybrid and ICE vehicles.
In recent news, Ford disclosed a $19.5bn writedown, cancelling its electric F-150 pick-up truck. Among the other companies sustaining losses after betting heavily on EVs are Volvo, Volkswagen, and GM.
Yet, in spite of this trend, cheaper EV models have proven to be a lifeline for automakers placing their bets on electric vehicles.
US-based electric vehicle company Rivian reported a 25% stock jump on Friday thanks to the imminent arrival of the R2 model, Rivian’s first mass-market vehicle with a projected retail price of around $45,000. The R2, set to debut in the second quarter of 2026, has a much smaller price tag than its predecessors, the R1S and the R1T. This decisive pivot towards cheaper models meant Rivian’s stock soared by 48% last year, despite relatively slow growth in EV adoption in the U.S.
Despite its EV scale-back, Ford too is betting on low-cost EVs, turning its efforts to the development of a mid-size electric pick-up that should retail for as little as $30,000.
Detroit automaker GM has followed suit, reviving its well-loved Bolt EV, which retails at a similar price.
Elsewhere, Tesla announced plans last week to axe two of its high-end vehicles, the Model S and Model X, from its lineup as it pivots towards physical AI and robotics. It will continue to manufacture and sell its low-cost electric options, including a stripped-back version of its Model Y SUV.
As price continues to be one of the biggest pain points for the global EV market, it seems automakers are centring affordability above all else in their global EV transition.
Keep up-to-date with the latest mobility news by subscribing to MOVEMNT’s free newsletter
