The State of Charge: What’s Really Powering (and Pausing) EV Adoption in 2025
In our latest industry paper, The State of Charge with EVs, we unpack the headwinds and tailwinds shaping today’s electric vehicle landscape.
In our latest industry paper, The State of Charge with EVs, we unpack the headwinds and tailwinds shaping today’s electric vehicle landscape.
By Dan Regan, CPTD – TiER1 Principal / Learning Strategist
Not long ago, forecasts had us all leaving gas stations behind for good. OEMs made bold electrification promises. Governments passed sweeping climate legislation. Investment in EVs, batteries and charging stations soared. Yet in 2024, electric vehicles made up just 8% of new U.S. car sales.
So what’s happening? And more importantly—what’s next?
In our latest industry paper, The State of Charge with EVs, we unpack the headwinds and tailwinds shaping today’s electric vehicle landscape. It’s not about hype. It’s about hard realities—and the opportunities they present for OEMs and dealers alike.
EV adoption hasn’t stalled, but it has entered a phase of recalibration. Here are just a few of the forces applying pressure:
Policy Whiplash
Federal incentives can accelerate EV adoption—but policies change with administrations. Recent shifts have created uncertainty in a space that thrives on long-term commitment and infrastructure investment.
Sustainability Trade-offs
While EVs reduce tailpipe emissions, the raw materials required for batteries raise other ethical and environmental concerns. Mining, refining, and disposal challenges make the sustainability narrative more complicated than many realize.
Grid Limitations
Can the U.S. power grid handle a surge in demand from mass EV adoption? Experts disagree. Until regional infrastructure is upgraded, this remains a sticking point.
Consumer Behavior
We’re still early in the adoption curve. Reaching beyond Innovators and Early Adopters to the Early Majority requires price parity, longer range, easier charging and cultural familiarity.
High Cost of Entry
Even with federal tax credits, EVs often remain 10–25% more expensive than comparable gas-powered vehicles. As some credits phase out, affordability may become an even bigger barrier.
Despite the friction, EV momentum hasn’t vanished—it’s evolving.
The Market Has Changed
EVs are no longer a novelty. They’re a real, growing segment—especially in urban markets and among Millennial buyers motivated by sustainability and innovation.
Hybrids Offer a Bridge
Plug-in and mild hybrids offer a practical entry point for consumers wary of full battery-electric vehicles, enabling a gradual transition without range anxiety.
Investment Is Deep and Wide
Trillions in public and private capital have already flowed into electrification. From battery plants to training programs, the ecosystem is too built-out to reverse course.
Technology Is Advancing Rapidly
Battery chemistry and EV design continue to evolve. Extended-range EVs (EREVs) and breakthroughs like solid-state or sodium-ion batteries could solve many current limitations in the near future.
For OEMs and dealers, the current slowdown isn’t failure—it’s a chance to align strategy with consumer readiness, infrastructure capacity, and long-term ROI. As the paper explains, EVs should be treated not as unicorns, but as part of a balanced powertrain portfolio.
And for dealerships? The ones that invest strategically in EV readiness—without overextending—are emerging as the future’s front-runners.
Download the full insights paper: The State of Charge with EVs
Inside, you’ll find:
Electrification isn’t an all-or-nothing game. It’s a complex shift—one that requires nuanced thinking, market agility, and strategic patience. Let’s talk about how your organization can adapt and lead.
Agree? Disagree? Talk to the author. You can get in touch with Dan here.