Why Electric Vehicles Are Struggling in the US Despite Global Sales Boom

Team Finance Saathi

    27/May/2025

What's covered under the Article:

  1. EVs were once popular in the early 1900s but lost out due to oil, cost, and poor infrastructure.

  2. Current US policies mirror the past with reduced support, risking today’s EV growth momentum.

  3. Global EV sales soar while US growth slows, highlighting the role of politics and infrastructure.

Long before the Tesla Cybertruck turned heads and electric SUVs became the face of a green future, electric cars were already thriving. In the early 20th century, models like the Baker Electric Coupe and Riker Electric Roadster smoothly operated on U.S. roads. Electric taxis once made up a third of New York’s fleet. These vehicles were quiet, clean, and reliable, especially for urban use.

But things changed rapidly. The rise of cheap gasoline, backed by federal policy and the launch of the affordable Ford Model T, shifted the balance. By the 1930s, electric vehicles (EVs) had almost disappeared, overwhelmed by gas-powered cars and the emergence of a powerful oil industry, which enjoyed heavy federal tax support.


How Federal Policy Fueled Gas and Crushed EVs

One of the most powerful tools shaping market dynamics was tax policy. In 1926, U.S. lawmakers offered a significant tax break to oil companies, allowing them to deduct 27.5% of gross income from taxable revenue. This decision incentivized fossil fuel dominance for decades.

Today, there’s a similar political influence in reverse. The Trump administration is attempting to roll back EV incentives, including eliminating federal tax credits for EV buyers, introducing a $250 annual EV fee, and halting investments in public charging infrastructure. This could significantly slow down EV momentum, especially as the industry is still scaling up.

The New York Times reports that these policy changes might not stop the EV revolution altogether, but they could delay it by years, particularly when infrastructure is still catching up.


The Infrastructure Gap: A Persistent Challenge

One of the main reasons for EV failure in the 1900s was the lack of electrification across the U.S., particularly in rural areas. In fact, many parts of America didn’t have electricity until the 1970s. Similarly today, infrastructure remains one of the biggest barriers to EV adoption.

Although the Biden administration allocated $7.5 billion to expand the public EV charging network, this rollout has been halted under the Trump administration. With fewer charging stations, especially in non-urban areas, consumers continue to suffer from range anxiety and inconvenient charging times — two major obstacles in choosing electric over gasoline.


EV Image Over Time: From Feminine to Macho

Back in the 1900s, electric cars were seen as ideal for women — quiet, clean, and easy to operate. Famous examples include Jay Leno’s 1909 Baker Electric, which came equipped with space for Victorian hats and even a built-in makeup case.

This gendered marketing may have contributed to their lack of mainstream appeal, as the culture leaned heavily toward rugged, masculine gasoline cars. Fast forward to today, and gendered narratives persist, but with a twist. Politicians like Rep. Marjorie Taylor Greene claim EVs are an attempt to “emasculate” driving culture, while Elon Musk's Tesla Cybertruck seeks to reclaim the image of EVs as bold and powerful.

Interestingly, Musk’s political alignment with Trump might alienate some of Tesla's original, environmentally conscious customer base, showing how branding and politics intertwine in shaping EV adoption.


Global Sales Surge, But US Growth Lags

Despite challenges in the U.S., the global EV market is booming. In early 2025, EV sales surged 35% in China and 25% in Europe. Meanwhile, the U.S. saw only an 11% increase. This widening gap is attributed to policy uncertainty and reduced federal support.

Countries like Norway, Germany, and China continue to invest heavily in EV subsidies, infrastructure, and innovation. In contrast, Republican-led policy shifts in the U.S. risk causing the country to fall behind in the global transition to electric mobility.


History Repeats: Technology Alone Isn’t Enough

The fall of EVs in the 1900s wasn’t due to inferior technology. Electric vehicles at the time were innovative, functional, and user-friendly. But they were outmatched in price, infrastructure, and fuel availability. As historian Leslie Kendall points out, a Ford Model T cost just one-third of a typical electric vehicle in 1908. And while refueling with gasoline was easy, carrying extra electricity wasn’t an option.

Richard Riker, grandson of EV pioneer Andrew L. Riker, argues that the core challenges remain unchanged. Unless fast and widespread charging becomes standard, gasoline will continue to be more convenient — especially for long-distance drivers.


The Road Ahead: Can EVs Still Win?

Despite the slowdown in U.S. growth, experts remain cautiously optimistic. Riker believes that if charging speeds improve and charging stations become as ubiquitous as petrol pumps, the internal combustion engine could soon become obsolete.

He notes: “If you can charge a car in five minutes and go 500 miles, the gasoline engine is history.”

But for that reality to take shape, political willpower is just as important as innovation. The lessons of history show that technology alone is never enough. Without the right incentives, infrastructure, and public support, even the best technologies can struggle to take off.


Conclusion: Innovation Needs Policy Support

Electric vehicles represent one of the most transformative technologies of our time. But as history has shown, their success depends not just on innovation, but on the politics and infrastructure that support them. The U.S. now stands at a critical juncture. Without policy alignment, it risks repeating the mistakes of a century ago.

To ensure the future of mobility is clean and sustainable, lawmakers must prioritize EV infrastructure, restore incentives, and work with — not against — industry progress. Only then can the EV revolution in America fulfill its full potential.

The Upcoming IPOs in this week and coming weeks are 3B FilmsN R Vandana Tex IndustriesScoda Tubes,Neptune PetrochemicalsVictory Electric Vehicles InternationalWagons Learning.


The Current active IPO are Blue Water LogisticsAstonea LabsNikita PapersProstarm Info SystemsAegis Vopak TerminalsSchloss Bangalore.


Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.


Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Related News
onlyfans leakedonlyfan leaksonlyfans leaked videos