Before it was just legacy automakers; now it’s also Tesla that is failing at the consumer EV market
The Fusion Report never limits the coverage to things simply about fusion energy. One of the things that’s fun covering (in most cases) is vehicles, particularly electric vehicles (EVs), but in this case, it’s not such a fun topic – this is how American automakers are dropping the ball when it comes to EVs. Roughly 14 years ago, Tesla introduced the Model S, the first of its then-revolutionary sedans and SUVs, which by 2020 made Tesla the most-valuable global automaker in terms of market capitalization. Unfortunately for Tesla, in 2025 it lost its status as a world’s leading manufacturer of electric vehicles to China’s automaker BYD, about the same time that Elon Musk started running the “Department of Government Efficiency” (DOGE).
Today, China dominates electric vehicles globally. China produced nearly 75% of the world’s electric vehicles in 2025 and more than 80% of EV battery cells, giving its manufacturers a significant cost advantage. US manufacturers concentrated on large expensive EVs, while global manufacturers built highly diversified product lines. Ford and GM put substantial resources into electric pickups and SUVs, segments where high battery costs translated into high prices and relatively narrow demand. While Ford is now pivoting toward a lower-cost EV platform, it expects that its EV business not to become profitable until 2029. Similarly, GM reduced planned EV capacity and recorded EV-related charges, while Ford’s Model-e unit posted multibillion-dollar annual losses. Even Tesla is refocusing its EV business on non-consumer automobiles, ending production of the Model S and Model X to repurpose their Fremont manufacturing capacity for Optimus humanoid robots.
So What Does the Consumer EV Market Want Today?
U.S. shoppers increasingly want EVs that feel like practical, low-risk mainstream vehicles—not early-adopter technology. The most important attributes are affordability, usable range, easy charging, and confidence in reliability and resale/repair costs. Interestingly, the latest data from Edmunds shows that nearly half of US consumers want a car priced under $40,000; a similar percentage of consumers prefer a car over an SUV or crossover.
Secondly, consumers who stay at the driving range and prefer fast, convenient charging are still incredibly important issues. US consumers have growing concerns about the accessibility and reliability of electric vehicle charging networks. Many worry about the availability of charging stations, especially in rural areas, and the time it takes to fully charge an EV. Additionally, there is uncertainty regarding the compatibility of vehicles with different charging infrastructure and the potential costs associated with charging at public stations.
The concern is real: a Harvard Business School analysis found public U.S. charging equipment successfully worked only about 78% of the time, with maintenance a major weak point. Automakers’ strategy is therefore not merely to add chargers, but to shift customers toward networks with stronger operational control, compatible equipment, straightforward payment, and larger charging-site capacity. From an analogy standpoint, EV drivers want EV chargers to be as reliable as gas pumps, and very few people believe this is true. In fact, most people feel that no one is maintaining existing public charging station networks. Moreover, pricing varies widely from station to station, with a lack of pricing transparency, and prices which change with the time of day.
What Other Things Are Annoying Consumers About US Auto Makers?
According to Cox Auto, a major consumer complaint is that some automakers put hardware in a car, then charge an ongoing fee to activate or keep using it—especially when buyers think the feature should have been included in the purchase price. Examples include heated or ventilated seats, remote start, navigation, driver-assistance functions, performance boosts, and EV range-related software upgrades. In Cox Automotive’s survey, 75% of consumers said they would not pay monthly or annual fees for most vehicle features; 92% said heated/cooled seats and 89% said remote start ought to be included upfront. The objection is strongest for basic comfort or safety functions and for features whose necessary hardware is already in the car. Buyers are generally more accepting of genuinely ongoing services—such as self-driving features, in-car Wi‑Fi, live data, stolen-vehicle tracking, or certain connected navigation services—because those involve continuing network or service costs. This is not unique to EVs, but since EVs have significant computerized features, it is more applicable.
Are Consumers’ Concerns A Focus For US EV Automakers?
U.S. automakers are addressing several of the concerns that make consumers hesitant about EVs, particularly charging access and reliability. Ford and GM have expanded driver access to Tesla’s Supercharger network through NACS adapters and are adopting the NACS connector on newer vehicles, reducing the risk that drivers will encounter incompatible chargers. Major manufacturers have also backed IONNA, a new fast-charging network designed to offer both NACS and CCS plugs, high-speed charging, and simpler features such as Plug & Charge payment. These steps matter because unreliable public chargers and complicated payment systems can make EV travel feel inconvenient and unpredictable.
However, automakers have not fully resolved consumer concerns about affordability, dependable public charging, and practical ownership. New EVs can still have high upfront prices, and the ending of U.S. consumer tax credits did not help. Although companies are expanding network access and investing in new infrastructure, these projects take time to reach all regions and do not immediately fix older chargers or reduce the price of every EV. As a result, U.S. automakers are making meaningful progress, but they must continue improving charging reliability, lowering vehicle costs, and providing clear support to convince more consumers that EVs are a practical alternative to gasoline cars.
Can US Auto Manufacturers Still Effectively Play In The EV Market?
US auto manufacturers can still compete effectively in the EV market because they have established brands, large manufacturing operations, nationwide dealer and service networks, and the ability to invest in domestic battery and vehicle production. They are also improving charging access by adopting common standards and partnering on new charging networks, which can make EVs more convenient for buyers. These strengths give US companies a foundation to produce EVs that meet consumer expectations for reliability, range, and support.
However, their future success is not guaranteed. US manufacturers face intense competition from Chinese companies that have developed lower-cost batteries and EVs at greater scale, while domestic EV demand has been uneven and some automakers have reduced or delayed EV investments. To remain competitive, US firms must continue developing affordable battery-electric vehicles, secure dependable battery supply chains, and improve public charging rather than relying mainly on hybrids and gasoline vehicles. Additionally, US automakers must build EVs that people want, not just ones that generate the most profit. If they do so, they can remain important players in the EV market; if they fall behind on cost, technology, and building something other than SUVs and pickup trucks, global competitors could gain a lasting advantage.
