The final weeks of the year are usually quiet for automakers, but 2025 has been very different, especially for electric vehicles. Indeed, support for EVs has weakened across multiple fronts. In Europe, the EU dropped its 2025 EV mandate, thereby giving traditional automakers more breathing room. In the U.S., the Trump administration rolled back fuel economy standards in early December, and the federal EV tax credit expired after the third quarter. Together, these changes have led to a clear drop in EV demand, which put pressure on Ford (F), General Motors (GM), and Stellantis (STLA) to rethink their strategies.
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Ford has responded with the most dramatic shift. In mid-December, the company announced that it would move away from full EVs and instead focus on hybrids and extended-range EVs, while cutting back on the number and size of future electric models. This decision comes with a large $19.5 billion charge tied to planning changes and canceled projects, including the current version of the Lightning pickup, a three-row EV SUV, and a planned electric commercial van. However, some warn that Ford could be vulnerable if EV demand picks up again in the coming years.
Separately, GM and Stellantis are also adjusting, though in a more gradual way. GM continues to push forward with EVs like the new Chevy Bolt while also investing $4 billion in hybrids and gas-powered vehicles, even after taking a $1.6 billion EV-related charge that could be followed by more. Stellantis, meanwhile, is scaling back EV plans in the U.S., bringing back gas engines, delaying electric trucks, and committing $13 billion to build more combustion-engine vehicles.
Which Automaker Stock Is the Better Buy?
Turning to Wall Street, out of the three stocks mentioned above, analysts think that STLA stock has the most room to run. In fact, STLA’s average price target of $11.54 per share implies more than 4% upside potential.
