The electric vehicle (EV) revolution has been a costly endeavor for automakers, with a staggering price tag of nearly $114 billion burned between 2022 and late 2025. This push, often driven by political and environmental agendas, has left many traditional car manufacturers in the red.
The EV Dream Turns Sour
An analysis by Robert Bryce in the New York Post reveals the financial reality behind the EV hype. Major players like Ford, General Motors, Stellantis, Mercedes-Benz, and Volkswagen have collectively invested billions in EV ventures, but the returns have been disappointing.
Some automakers, like Ford, provide clear financial reporting on their EV ventures, showing direct losses in SEC filings. Others, like GM and Stellantis, don't break down EV performance, leaving analysts to estimate losses based on earnings results and write-downs.
The numbers are eye-opening: between 2022 and the third quarter of 2025, legacy automakers are estimated to have lost a whopping $83.6 billion on EV programs. This includes significant write-downs at Ford and GM. EV-only startups like Lucid and Rivian have also contributed to the red ink, with losses totaling $30.2 billion. Across these seven automakers, the total losses approach a staggering $114 billion.
The Costly Mistakes
So, what went wrong? Legacy automakers poured billions into new factories, battery deals, and all-electric lineups, often under intense regulatory pressure and incentive schemes. The Biden administration's push for rapid, mass adoption of EVs didn't fully materialize, leaving automakers with a glut of expensive EVs and a lack of consumer demand.
From 2015 to early 2024, automakers announced over $188 billion in U.S. EV and battery investments, with spending accelerating after the passage of the Inflation Reduction Act in 2022. But consumers didn't follow the government's lead.
In the U.S., EV sales spiked briefly in Q3 2025 as buyers rushed to take advantage of the $7,500 federal tax credit before it expired. This incentive-driven surge pushed quarterly sales above 437,000 units, but once the subsidy disappeared, demand plummeted. Q4 sales fell by 46% compared to Q3, cutting market share nearly in half.
High-priced EVs sat on dealer lots, with average transaction prices around $59,000, far above gas-powered alternatives. Range anxiety, uneven charging infrastructure, and cheaper gasoline pushed buyers back towards hybrids, trucks, and SUVs.
A Similar Story in Europe
European automakers faced a similar challenge. Aggressive emissions mandates, driven by climate-focused policymakers, collided with weakening demand and an influx of lower-cost Chinese competitors. In 2025, China's BYD overtook Tesla as the world's largest EV seller, highlighting the dominance of state-backed Chinese firms in the global EV market.
Under increasing pressure, Volkswagen canceled or delayed multiple EV projects, while Mercedes paused or scrapped several U.S.-bound EQ models. Other automakers extended the life of internal-combustion and hybrid platforms, quietly lobbying for regulatory relief.
The EV push has been a costly lesson for automakers, with billions invested and little to show for it. As the dust settles, the question remains: was the EV dream worth the financial sacrifice?
By Zerohedge.com
