As the global adoption of electric vehicles (EVs) gathers momentum, the US EV market has entered a period of stagnation. In the first quarter of this year, sales of new energy vehicles across the United States plummeted by around 27% to 28% compared to the same period last year, with only 216,000 units sold. The market penetration rate for pure EVs nosedived to 5.8%. Even in California, the largest new energy vehicle market in the US, pure EV sales in the first quarter took a significant hit, dropping by 40.2% year-on-year. The market share for pure EVs in California also saw a sharp decline, falling from 21% in 2025 to 13.7%. This market downturn can be largely attributed to the expiration of the federal government's $7,500 EV purchase tax credit policy, which was not renewed. This policy lapse has resulted in higher EV costs and a diminished appeal for consumers. Simultaneously, California's subsidy policies have excluded key models from brands like Tesla from receiving subsidies, further dampening sales. Faced with this policy uncertainty, traditional automakers have taken a proactive approach by reducing their EV supply and cutting back on marketing investments. Instead, they are shifting their focus towards hybrid and extended-range models, which currently seem to offer more stability and consumer appeal in the market.