Business
How the US got left behind in the global electric car race
Getty ImagesYou could be forgiven for thinking that electric cars might finally be gaining momentum in the US.
After all, sales of battery cars topped 1.2 million last year, more than five times the number just four years earlier. Hybrid sales have jumped by a factor of three.
Battery-powered cars accounted for 10% of overall sales in August – a new high, according to S&P Global Mobility.
And in updates to investors this week, General Motors, Ford, Tesla and other companies all reported record electric sales over the past three months.
This marked a bright spot in an industry wrestling with the fallout from still high interest rates and buyers on edge over inflation, tariffs and the wider economy.
But analysts say the boom was caused by a dash to buy before the end of a government subsidy that helped knock as much as $7,500 (£5,588) off the price of certain battery electric, plug-in hybrid or fuel cell vehicles.
With that tax credit gone as of the end of September, carmakers are expecting momentum to shift into reverse.
“It’s going to be a vibrant industry, but it’s going to be smaller, way smaller than we thought,” Ford chief executive Jim Farley said at an event on Tuesday.
“I expect that EV demand is going to drop off pretty precipitously,” the chief financial officer of General Motors, Paul Jacobson, said at a conference last month, adding it would take time to see how quickly buyers would come back.
Even with the recent gains, the US, the world’s second biggest car market, stood out as a laggard in electric car sales compared to much of the rest of the world.
In the UK, for example, sales of battery electric and hybrid cars made up nearly 30% of new sales last year, according to the International Energy Agency (IEA). Latest industry figures suggest that number is even higher.
In Europe, they accounted for roughly one in five sales, while in China, the world’s biggest car market, sales of such cars accounted for almost half of overall sales last year, according to the IEA, and they are expected to become the majority this year.
Take-up in some other countries, like Norway and Nepal, is even greater.
Electric vehicles (EVs) tend to account for a smaller share of sales in Latin America, Africa and other parts of Asia – but growth there has been surging.
Policy differences
Analysts say adoption in the US has been slowed by comparatively weak government support for the sector, which has limited the kinds of subsidies, trade-in programmes and rules that have helped the industry in places such as China, the UK and Europe.
Former President Joe Biden pushed hard to increase take-up, aiming for electric cars to account for half of all sales in the US by 2030.
His administration tightened rules on emissions, boosted demand through purchases for government fleets, nudged carmakers to invest with loans and grants for EV investments, spent billions building charging stations and expanded the $7,500 tax credit as a sweetener for buyers.
Supporters cast those efforts in part as a competitive imperative, warning that without these US carmakers would risk losing out to competitors from China and other countries.
But President Donald Trump, who recently called climate change a “con job”, has pushed to scrap many of those measures, including the $7,500 credit, arguing that they were pushing people to buy cars they would not otherwise want.
“We’re saying … you’re not going to be forced to make all of those cars,” he said this summer, while signing a bill aimed at striking down rules from California, which would have phased out sales of petrol-only cars in the state by 2035. “You can make them, but it’ll be by the market, judged by the market.”
Bloomberg via Getty ImagesElectric cars have become more affordable in the US in recent years – but they still cost more than comparable petrol-powered vehicles.
And Chinese carmakers like BYD, which have made rapid inroads in other markets thanks to low prices, have been effectively shut out of the US, due to high tariffs targeting cars made in China, backed by both Biden and Trump.
As of August, the average transaction price of an electric car in the US was more than $57,000, according to auto industry research firm Kelley Blue Book, about 16% higher than the average for all cars.
The least expensive battery car on offer, a Nissan Leaf, costs about $30,000 (£22,000). By comparison, several models can be found for under £20,000 in the UK.
Analysts say what buyers do next hinges on how carmakers set prices in the months ahead, as they contend not only with the end of the tax credit but also tariffs on foreign cars and certain car parts that Trump introduced this spring.
Hyundai said this week it would offset the loss of the tax credit by lowering the price for its range of Ioniq EVs. But Tesla said the cost for monthly lease payments of some of its cars would rise.
Stephanie Brinley, associate director of S&P Global Mobility, said she did not expect to see many firms follow Hyundai’s example, given the pressures from tariffs.
While some buyers may opt for EVs anyway, “next year is going to be hard,” she warned, noting that her firm is calling for overall car sales to fall by roughly 2% in 2026.
“It would have been difficult enough if all you had to deal with is new tariffs, but with new tariffs and the incentive going away, there’s two impacts.”
Carmakers had already been scaling back their investments in electric cars.
Researchers say Trump’s policy changes could reduce those investments even more.
“It’s a big hit to the EV industry – there’s no tiptoeing around it,” said Katherine Yusko, research analyst at the American Security Project
“The subsidies were initially a way to level the playing field and now that they’re gone the US has a lot of ground to make up.”
However Ms Brinley said she was hesitant to declare the US behind in an industry still testing out technology alternatives.
“Is [electric] really the right thing?” she said. “Saying that we’re behind assumes that this is the only and best solution and I think it’s a little early to say that.”
Business
‘Opportunity to consider options’: US govt seeks delay in tariff refunds battle as Trump fumes over possible ‘rehearing’ – The Times of India
US President Donald Trump’s administration is seeking to delay legal proceedings related to tariff refunds, a week after the Supreme Court struck down his sweeping global duties, according to a court filing on Friday.The Supreme Court’s ruling marked a major setback for Trump’s signature economic policy and opened the door to a complex and legally challenging refund process, as importers prepare to sue for repayments.
In its filing before the United States Court of Appeals for the Federal Circuit, the government sought a delay of up to four months before refund litigation resumes at the US Court of International Trade.“In a case on review from a federal court, the Supreme Court sends down its judgment 32 days after entry of judgment,” AFP reported quoting the government in its submission. It further argued that the court should grant an additional delay of “90 days to allow the political branches an opportunity to consider options.”“Complexity in the future counsels appropriately careful process, not breakneck speed,” the government said.Earlier in the day, Trump also criticised the Supreme Court’s decision, warning it could result in massive payouts.Posting on Truth Social, the MAGA Supremo said, “The recent decision of the United States Supreme Court concerning TARIFFS could allow for Hundreds of Billions of Dollars to be returned to Countries and Companies that have been ‘ripping off’ the United States of America for many years, and now, according to this Decision, could actually continue to do so, at an even increased level.”“I am sure that the Supreme Court did not have this in mind! It doesn’t make sense that Countries and Companies that took advantage of us for decades, receiving Billions and Billions of Dollars that they should not have been allowed to receive, would now be entitled to an undeserved ‘windfall,” he said.He also questioned the possibility of further legal action, asking, “Is a Rehearing or Readjudication of this case possible???”The legal battle began after the US Court of Appeals for the Federal Circuit ruled in August last year that many of Trump’s tariffs were illegal, but sent the question of refunds back to the Court of International Trade. The appeals court paused issuing its mandate while Trump appealed to the Supreme Court.Last week, the top court by a 6–3 majority ruled that Trump had exceeded his authority in imposing broad global tariffs, striking them down.Chief Justice John Roberts wrote that the Constitution does not grant the executive unilateral authority to levy taxes, saying the framers did not vest taxing power in the presidency.However, the decision did not affect sector-specific duties on products such as steel and automobiles.Within hours of the ruling, Trump invoked a different law to impose a new 10% tariff on imports into the United States, later raising it to 15%.
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‘While some roles may be automated, others will see enhancement through AI augmentation, and other, entirely new roles will be created,’ the report says.
As AI adoption spreads across businesses, companies are expected to hire senior-level executives such as chief AI officers to oversee implementation across functions.
Amid rising concern that artificial intelligence (AI) could displace white-collar workers at scale, a report by Morgan Stanley offers a measured view, saying the technology is more likely to reshape work than eliminate it. Rather than triggering mass early retirement, the report notes that employees will need to reskill for roles that are still emerging, according to Fortune.
“While some roles may be automated, others will see enhancement through AI augmentation, and other, entirely new roles will be created,” the report highlighted.
The researchers draw on more than 150 years of technological change — from electrification to the internet — to argue that innovation historically transforms job profiles without fully replacing human labour. The report cites spreadsheets in the 1980s as an example: they reduced demand for some clerical tasks but enabled analysts to focus on complex work and led to new finance-sector professions.
As AI adoption spreads across businesses, companies are expected to hire senior-level executives such as chief AI officers to oversee implementation across functions. The report also projects a surge in governance-focused positions tied to data compliance, policy oversight and information security, especially in sensitive sectors like healthcare.
“There will also be a massive surge in AI governance roles focused on data compliance, policy oversight, and information security, particularly in sensitive sectors like health care,” the publication stated.
New job titles may also emerge across sectors. In consumer industries, roles such as AI personalisation strategists and AI supply-chain analysts could appear, while industrial firms may seek predictive maintenance engineers and smart-grid analysts. The rise of natural-language coding tools could also create hybrid IT roles, allowing product managers to directly prototype concepts before engineers complete technical execution.
Separate evidence suggests the short-term labour impact of AI remains limited. A National Bureau of Economic Research study surveying nearly 6,000 executives in the US, UK, Germany and Australia found that more than 90 per cent reported no change in employment levels over the past three years, and 89 per cent saw no productivity impact.
“On average, more than 90 per cent of business managers across the four countries estimate no impact of AI on their employment over the past three years. 89 per cent report no impact of AI on their labour productivity (measured as volume of sales per employee) over the last three years,” the study highlighted.
Even so, expectations for future gains remain strong. Executives surveyed expect AI to raise productivity by 1.4 per cent and output by 0.8 per cent over the next three years, while 75 per cent of firms anticipate using some form of AI technology within that period.
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February 28, 2026, 09:11 IST
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Warner Bros Discovery signed a SUD 11 billion deal with Paramount Skydance Friday morning, as revealed in a global town hall audio clip.
Warner Bros signs USD 110 billion deal with Paramount (Image for representation)
Warner Bros Discovery (WBD.O) signed a SUD 110 billion deal with Paramount Skydance (PSKY.O) Friday morning, the two companies announced, marking one of the most consequential media mergers in recent history.
“Netflix had the legal right to match the PSKY offer. As you all know, they ultimately decided not to do that. That then resulted in a signed agreement with PSKY as of this morning. So that’s where everything stands,” Bruce Campbell, Warner Bros’ chief revenue and strategy officer, said, as quoted by news agency Reuters.
The companies revealed that the deal is expected to close in the third quarter of 2026.
The deal was inked as Netflix declined to match Paramount’s latest USD 31-per-share offer, pulling out of the bidding war for Warner Bros. Discovery’s studio and streaming assets.
According to the Reuters report, citing sources, Warner Bros received the contracts from Paramount on Saturday and within the following two days, it announced that Paramount’s offer was superior.
The deal was immediately approved by board of directors of both media giants, said the companies in a joint statement.
The deal is “subject to customary closing conditions, including regulatory clearances and approval by WBD shareholders, with a vote expected in the early spring of 2026″, the statement read.
Interestingly, Paramount Skydance is headed by David Ellison, the son of Silicon Valley billionaire Larry Ellison, a close ally of President Donald Trump.
“By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders — and we couldn’t be more excited for what’s ahead,” David Ellison said in a statement.
NOT A ‘MUST HAVE’
In a stunning move hours later, Netflix announced it would not match Paramount Skydance’s latest offer to acquire Warner Bros Discovery. Netflix co-CEOs Ted Sarandos and Greg Peters asserted that “this transaction was always a nice to have at the right price, not a ‘must have’ at any price.”
TRUMP YET TO COMMENT
At one point, President Donald Trump said he might weigh in on the agreement. However, he told NBC News in early February that he would not be “involved” in the proceedings.
Then, last week, he issued a warning to Netflix, saying it would “pay the consequences” if it did not fire board member Susan Rice, an ex-official of the Biden administration.
During a podcast, Rice had said the entities that “take a knee” to the President would be “held accountable” when Democrats return to the office.
Meanwhile, the President is yet to comment on the deal.
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Washington D.C., United States of America (USA)
February 28, 2026, 07:48 IST
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