EV plans in the US: Cancellations, launches and the path forward

Volvo will pull the EX30 from the US EV market after the 2026MY, according to The Drive. A Volvo spokesperson said the change to Volvo’s EV plans was “a direct response to shifting market conditions and financial factors.” The larger EX60 and EX90 electric sport utility vehicles (SUVs) will continue to be offered in the US. The EX30’s demise reflects a launch delay of more than a year and the overwhelming tariffs Volvo absorbed to bring the vehicle to the US. It remains available in Canada and Mexico.

The EX30 was highly anticipated as an affordable and competitive premium EV entry, starting around US$35,000. US sales finally began in December 2024 but, according to S&P Global Mobility light-vehicle sales forecast data, reached only 5,409 units in 2025. 

While tariffs and Volvo’s software development delays contributed to the challenge, US demand also fell short of expectations. In 2025, the US accounted for only 6.9% of global EX30 sales.

Honda is also scaling back its electric vehicle plans. Honda initially invested US$700 million to overhaul its Marysville, Ohio, assembly plant, and Honda and LG together invested US$4.4 billion into a nearby battery plant to support the EVs. On March 12, Honda announced the three products planned for this investment would be canceled, part of a broader pattern of EV cancellations and delays in the US. Honda joins Ford, GM and Stellantis in announcing major losses and write-downs over adjustments to EV plans. Honda had planned the 0 Series sedan and SUV for the Honda brand and a compact EV SUV for Acura called RSX. 

The future for the Honda-produced Afeela 1 for Sony Honda Mobility, slated for production late this year, is unclear. The cancellation of the RSX and the end of RDX production leaves Acura without any compact SUV available until at least 2027.

The new EVs were launch products for Honda’s new vehicle software operating system, a significant step forward for its software-defined vehicle development. The change delays this technology rollout and could impact longer-term competitiveness. If EV adoption in the US grows unexpectedly, Honda could be left in the cold. 

Several OEMs are also moving forward with their electric vehicle plans to add new US EV models, including EV startups Rivian and Lucid and traditional brands BMW, Chevrolet and Lexus.

The Rivian R2 begins arriving in mid-2026, with more trim levels rolling out through the end of 2027. The R2 Performance version will arrive in a launch package with a starting price of US$57,990. It will have 330 miles of range, 656 hp and 609 lb/ft of torque from a dual-motor AWD setup. Three more versions will follow in 2027, including a standard rear-wheel drive model with 350 horsepower, more than 265 miles range and a US$45,000 price.

The R2 is critical for Rivian’s future. As is typical with all-new vehicle launches, the highest-end model arrives first. Rivian is taking nearly 18 months to roll out a full product range, so success may not be fully evident until well into 2028.

Lucid’s upcoming midsize platform will spawn three new utility vehicles. Cosmos is first, with initial production in late 2026 and sales in 2027, followed by the Earth about a year later and then a final, unnamed model. Few technical specifications have been shared, though the vehicle will use new, smaller and more efficient motors, start below US$50,000 and usher in the Lucid UX 4.0.  

Lucid’s expansion to smaller, more accessible entries is part of its growth strategy, just as the R2 is for Rivian. Early information suggests that the Cosmos and its siblings will be highly competitive. 

Though the R2 will arrive before the Cosmos, these two will be fast competitors. For both companies, the staggered launch of models and trim levels show careful production scaling and will lead to cadenced volume growth. 

When Chevrolet retired the Bolt in 2023, it was just hitting its stride. The 2027MY Bolt aims to recapture that momentum, offering dealers an EV starting below US$30,000. It features faster charge time; more range and more power than the outgoing car. A shift to lithium iron phosphate (LFP) batteries reduced battery cost and improved charge times—and is the first US LFP application for GM. The Bolt is an affordable EV with potential to bring in new EV buyers. 

Lexus is offering its ES sedan in two EV versions, the ES 350e and ES 500e, with a hybrid joining later in the year. The front-drive ES 350e offers 221 horsepower and 307-mile EPA-estimated range, and begins arriving at US dealerships in April. The all-wheel-drive ES 500e offers 338 horsepower and 272-mile EPA estimated range. The ES EV sedan pricing ranges from US$48,795 to US$57,195. The new sedan is one of Lexus’ most expressive designs. 

BMW revealed the i3 on March 18, set for US sales in the first half of 2027. Initial details point to an impressive development from a company which has been working on EVs for decades, including the first BMW i3 in 2013 and the Mini E in 2008. The new i3 is the second vehicle on the company’s Neue Klasse EV architecture, after the iX3 arrives in the US in mid-2026.  

First will be the i3 50 xDrive, with 463 hp and BMW estimated 440 miles of range and bidirectional charging, advanced user interface technology, battery technology and a new four-zone electric architecture. Pricing is not yet available. As the second Neue Klasse vehicle, BMW will demonstrate scaling the new technology across multiple vehicles. 

While utility vehicles dominate the market, sedans remain important for luxury brands. Audi, BMW and Mercedes-Benz also continue to offer EV sedans.

This flurry of EV market news must be analyzed in the larger context of electric vehicle adoption rate trends. S&P Global Mobility expects US EV market share to be about 12% in 2030. According to S&P Global Mobility registration data, EV market share dropped from 8.0% in 2024 to 7.5% in 2025, as US incentives ended. 

With mainstream US consumers hesitant and massive costs to launch electric vehicles, the path forward for the EV market in the US remains unclear. Automakers that can weather this period while delivering cutting-edge engineering and design to lower costs and improve value may find opportunities. 

Some legacy automakers with higher volume and mainstream presence—but still hesitant about their EV plans—risk falling behind in competitive EV offerings. How companies adjust their electric vehicle plans will determine their long-term success in the US EV market.