What car companies are doing with electric vehicles right now
Every major automaker — Tesla, General Motors, Ford, Volkswagen, BMW, Hyundai, Kia, and others — now makes at least one battery-powered car. Most have announced plans to phase out gasoline-only models over the next 10 to 15 years, though the timeline varies by company and by country. Some, like Volkswagen and General Motors, have committed to selling only electric vehicles by 2035 or 2040. Others, like Toyota and Honda, are moving more slowly and plan to keep hybrid models (part electric, part gasoline) as a major part of their lineup for longer.
The shift is driven by three forces: government regulations that require lower emissions, consumer demand in certain markets, and the fact that battery costs have fallen enough that electric vehicles are becoming profitable to build. Car companies are not doing this because they want to — they are doing it because regulations in Europe, California, and other places now require it, and because staying competitive means offering what buyers in those regions will purchase.
Key Takeaways
- Most major car companies now sell at least one electric vehicle model, and nearly all have announced plans to stop making gasoline-only cars within 10 to 20 years.
- Government regulations in Europe, California, and other regions are the primary driver of this shift, not consumer demand alone.
- Battery costs have dropped significantly, making electric vehicles cheaper to manufacture, though they often still cost more upfront than comparable gasoline cars.
- Car companies are investing billions in new factories, battery supply chains, and charging networks to support the transition.
- The speed and scope of the shift varies widely — some companies are moving faster than others, and some regions are moving faster than others.
Why car companies are investing in electric vehicles
Regulation is the primary reason. The European Union has set rules that require automakers to reduce the average emissions of their new cars each year, with a target of zero-emission vehicles by 2035. California has similar rules and has banned the sale of new gasoline-only cars starting in 2035. China, which is the world's largest car market, has rules requiring a percentage of each company's sales to be electric or hybrid. These are not suggestions — companies that miss these targets face fines in the billions of dollars.
The second reason is that battery costs have fallen. In 2010, a battery pack cost around $1,100 per kilowatt-hour. By 2023, that cost had dropped to around $130 per kilowatt-hour for most manufacturers. That change makes it possible to build an electric car at a price point that consumers will actually pay. It does not mean electric cars are cheap — they are still usually more expensive upfront than gasoline cars — but it means the gap is narrowing, and in some cases electric cars are now cheaper to own over their lifetime because fuel and maintenance costs are lower.
The third reason is competition. Once one major company commits to electric vehicles, others have to follow or risk losing market share. Tesla proved that there was a market for electric cars, and now every other company has to offer them or lose customers to Tesla or to competitors who do offer them.
How car companies are structuring their electric vehicle lineups
Most large automakers are taking one of two approaches: some are creating separate electric brands (like Volkswagen's ID line, General Motors' Ultium platform, or BMW's i line), while others are converting their existing model lines to electric versions (like Ford's Mustang Mach-E or Chevrolet's Blazer EV). A few, like Tesla, build only electric vehicles.
The separate-brand approach lets a company design cars from the ground up as electric, which can result in better packaging and lower costs. The converted-model approach lets a company use existing brand recognition and dealer networks, which can be faster to market. Most companies are doing both — they have a few dedicated electric platforms and also offer electric versions of popular gasoline models.
Pricing varies widely. Some electric vehicles, like the Nissan Leaf or Chevy Bolt, start under $30,000. Others, like the BMW i7 or Mercedes EQS, cost $100,000 or more. Most fall in the $35,000 to $65,000 range. The price depends on the size of the car, the size of the battery, the brand, and where it is sold.
What car companies are doing about charging infrastructure
Car companies cannot sell electric vehicles at scale without charging stations, so most are investing in charging networks or partnering with charging companies. Tesla built its own Supercharger network, which is now the largest fast-charging network in North America. General Motors, Ford, and other companies have partnered with ChargePoint, Electrify America, and other networks. Some companies are also installing chargers at their dealerships.
The challenge is that charging infrastructure is expensive and the return on investment is slow. Most car companies are not building charging networks to make money — they are building them to remove a barrier to buying electric cars. Some are also lobbying governments to fund public charging networks, which is happening in the United States through the Bipartisan Infrastructure Law and in Europe through various national programs.
How battery supply chains are shaping the industry
Batteries are the most expensive part of an electric vehicle, and they require raw materials like lithium, cobalt, nickel, and manganese. Car companies are signing long-term contracts with mining companies and battery manufacturers to find these materials. Some are also investing in battery recycling to recover materials from old batteries and reduce dependence on mining.
The battery supply chain is currently a bottleneck. There is not enough battery production capacity to meet demand, which is why many electric vehicles have long wait times. Car companies are building new battery factories — Tesla, General Motors, Ford, Volkswagen, and others all have announced plans to build or expand battery plants in North America, Europe, and Asia. These factories are expensive (often $5 billion or more) and take several years to build, so the supply constraint will likely persist for several more years.
The location of battery production is also becoming a political issue. The United States, through the Inflation Reduction Act, is offering tax credits and subsidies for electric vehicles made in North America with batteries made in North America. Europe is doing something similar. This is pushing car companies to build batteries closer to where they sell cars, rather than importing them from Asia.
Regional differences in how fast car companies are moving
The pace of the shift to electric vehicles is not the same everywhere. Europe is moving fastest — many European countries have banned the sale of new gasoline-only cars by 2035 or earlier, and European car companies are investing heavily in electric vehicles. China is also moving fast, both because of government regulations and because Chinese companies like BYD are now major electric vehicle manufacturers. The United States is moving more slowly, partly because gasoline is cheaper and partly because the regulations are less strict than in Europe.
This means that a car company might sell a model in Europe that it does not sell in the United States, or it might sell an electric version in Europe and a gasoline version in the United States. It also means that car companies are making different bets about the future — some are betting that the world will move to electric vehicles quickly and are investing accordingly, while others are hedging their bets by keeping gasoline and hybrid options available for longer.
What this means for car buyers
The shift to electric vehicles is creating more choices for buyers, but it is also creating confusion. There are now dozens of electric vehicle models available, with different prices, ranges, and features. Some are good, some are not. Some are reliable, some have had problems. The market is still young and changing rapidly, so a car that is a good choice today might not be a good choice in two years.
For buyers, the main takeaway is that electric vehicles are no longer a niche product — they are becoming mainstream. Most major car companies now offer them, and the technology is mature enough that they are reliable. The main trade-offs are upfront cost (still higher than gasoline cars for most models), range (still lower than gasoline cars for most models), and charging time (much longer than refueling). Whether an electric vehicle makes sense for a particular buyer depends on their driving patterns, their budget, and whether they have access to charging.
Frequently Asked Questions
Which car companies are moving to electric vehicles the fastest?
Volkswagen, General Motors, and Ford have made the most aggressive commitments to phasing out gasoline-only cars. Volkswagen plans to stop making gasoline-only cars in Europe by 2035. General Motors has committed to selling only zero-emission vehicles by 2035. Tesla, of course, only makes electric vehicles. Toyota and Honda are moving more slowly and plan to keep hybrid options available longer.
Why are electric vehicles still more expensive than gasoline cars?
Batteries are expensive, and even though battery costs have fallen, they still account for a large share of the total cost of an electric vehicle. Over the lifetime of the car, electric vehicles are often cheaper because electricity is cheaper than gasoline and maintenance costs are lower. But the upfront cost is still higher for most models.
Are car companies making money on electric vehicles?
Most car companies are not yet making much profit on electric vehicles. They are selling them partly because regulations require it and partly to build market share and brand recognition. As battery costs continue to fall and production volumes increase, profitability should improve. Tesla has been profitable on electric vehicles for years, but most other companies are still in the investment phase.
Will all car companies eventually stop making gasoline cars?
Almost certainly, yes — at least in Europe, California, and other regions with strict emissions regulations. In other parts of the world, gasoline cars may remain available longer. But the global trend is clear: gasoline-only cars are being phased out. The timeline varies by company and region, but most major automakers have committed to stopping production of gasoline-only vehicles by 2035 to 2045.
What happens to car dealerships as companies shift to electric vehicles?
Dealerships are changing. Electric vehicles require less maintenance than gasoline cars, which means dealerships will make less money on service. Some dealerships are investing in charging infrastructure and electric vehicle service capabilities. Some car companies, like Tesla, are selling directly to consumers rather than through dealerships. Traditional dealerships are adapting, but the business model is shifting.