EVs stumble into 2026 as automakers bet on cheaper cars.

EV sales and federal subsidies have cooled entering 2026, prompting some automakers to scale back costly projects while many are preparing lower-priced electric models aimed at mainstream buyers.

Electric-vehicle sales have slowed as federal purchase subsidies largely expired. Several major automakers reported cutbacks, write-downs, or temporary production halts tied to EV programs. At the same time, legacy manufacturers and startups are readying lower-priced electric models for 2026 and beyond. Reporting frames this as a shift from early luxury-focused offerings toward more mainstream price points. Key developments: - Multiple automakers announced specific setbacks and charges: Ford suspended its all-electric F-150 and recorded a $19.4 billion write-down tied to battery investments; Volkswagen paused ID. Buzz production for 2026; General Motors said it expects to lose $6 billion while retooling its EV strategy; Stellantis discontinued all plug-in hybrids, including the Jeep Wrangler 4xe. - The federal $7,500 EV tax credit largely expired in September, and several outlets reported that EV sales cooled afterward; Tesla also experienced a sales slowdown in that period. - A wave of lower-priced EVs is scheduled to arrive in 2026, with reported examples including rebooted or returning models and new entries at lower starting prices (the article cites models and price points such as $29,000 and mid-$30,000 to mid-$40,000 ranges). - New-vehicle sticker prices and household auto debt remain elevated: reporting cited an average new-vehicle price near $50,077 and US auto loan debt of $1.66 trillion in 2024, with delinquencies rising. Summary: The immediate picture combines industry retrenchment and a strategic pivot toward affordability. Automakers are preparing lower-priced electric models in 2026 and into 2027 to test consumer demand without the prior level of federal subsidy support. Undetermined at this time.