Electric Vehicle Industry Update: Tesla, Ford & Global EV Growth

On December 18, 2025, the electric vehicle (EV) industry continues its rapid evolution, with strong global sales growth contrasted by significant policy and corporate adjustments in key markets. While emerging economies and Europe drive adoption, the US faces headwinds from incentive rollbacks. Here’s a roundup of today’s top EV developments worldwide.

Global EV Sales Reach New Heights in 2025

Electric vehicle adoption has accelerated dramatically this year, with over a quarter of new cars sold globally being electric or plug-in hybrid. Year-to-date figures show approximately 18.5 million EVs sold through November, marking a 21% increase over 2024. Projections suggest full-year sales will exceed 20 million, pushing EVs to more than 25% of global new car sales.

China remains the dominant force, but growth is broadening: Europe surges despite challenges, while emerging markets like Southeast Asia (led by Vietnam and Singapore at ~40% EV share) and Brazil reshape the landscape. This shift underscores a “major turning point” in decarbonizing transport, with EVs increasingly displacing fossil fuel demand.

Tesla Advances Driverless Testing in Austin

Tesla made headlines today as CEO Elon Musk confirmed ongoing tests of fully driverless vehicles—no occupants or safety monitors—on public roads in Austin, Texas. This milestone builds on the company’s Robotaxi pilot, with shares climbing amid optimism for accelerated autonomous deployment.

Additionally, Tesla’s 2025 Holiday Update is rolling out, featuring Grok AI integration for navigation, enhanced Santa Mode, and other user-friendly tweaks—further solidifying its lead in software-defined vehicles.

Ford Pivots EV Strategy with Major Charges and Hybrid Focus

Ford announced a $19.5 billion hit tied to scaling back pure EV ambitions, including converting the F-150 Lightning into an extended-range electric vehicle (EREV) with a gasoline generator for up to 700 miles of range. The company also canceled a $6.5 billion battery deal with LG Energy Solution and is repurposing capacity for grid-scale energy storage to meet booming data center demand.

This reset reflects broader US industry trends, where tax credit expirations and policy changes under the Trump administration have slowed domestic EV growth.

Policy Divergence: EU Softens 2035 Ban, US Incentives Pause

The European Union has dropped its strict 2035 combustion engine ban, allowing plug-in hybrids and range extenders amid pressure from automakers struggling against Chinese competition. Meanwhile, US federal funding for charging infrastructure faces uncertainty after an executive order paused disbursements.

In contrast, countries like India (Maruti Suzuki localizing EV components) and Malaysia are ramping up support for affordable models.

Charging Infrastructure and Battery Advances

EVgo reported deploying over 40% of 2025’s new US fast chargers using prefabricated modular designs, cutting costs by 15% and speeding rollout. Globally, public charging ports are expanding rapidly, with ultra-fast networks growing in China and partnerships like Colliers-EnviroSpark boosting commercial installations.

Battery tech progresses include extended warranties from BYD and ongoing solid-state developments, supporting longer ranges and lower costs.

Outlook: Resilience Despite Challenges

The EV transition shows remarkable global resilience, driven by affordability in emerging markets and technological leaps. While the US lags due to policy reversals, worldwide momentum—fueled by China, Europe, and new players—points to EVs claiming an even larger share in 2026.