It’s widely accepted that greater EV adoption in the U.S. hinges largely on the ability to make the vehicles more affordable for everyday consumers.
However, the looming question is: Will legacy companies like Ford and General Motors be able to deliver on that idea with compelling products, and still make a profit?
First things first: Among all the factors tied to consumer apprehension toward EVs, pricing continues to rank as a top concern, an issue intensified by the recent elimination of the $7,500 federal EV tax credit.
An April Deloitte study revealed that 43% of U.S. respondents considering an electric vehicle said purchase price is among their top five most important criteria, behind only battery driving range (51%).
A J.D. Power study found that while the percentage of buyers in the U.S. rejecting EVs due to price decreased 4% in 2025 compared to 2024, it remains a top factor for 43% of shoppers.
Digging in: Nearly every automaker working to establish its footing in the mass EV market is addressing the affordability issue—either by expanding lineups or overhauling its strategies altogether.
GM is planning a “family” of low-cost electric vehicles that share the same price point and size as the new Bolt, which will start at $29,990 when it goes on sale early next year.
Ford announced earlier this year that it will launch its affordable EV strategy with a new electric pickup expected to start around $30,000.
Tesla finally unveiled lower-priced models of its popular cars—the Model 3 Standard and Model Y Standard—priced at $38,630 and $41,630, respectively.
Rivian has indicated that its affordable EV strategy will extend beyond the recently announced R2 crossover and R3 and R3X hatchbacks, with plans to launch a Rivian R4 and R5.
Why it matters: With affordability still one of the top barriers to EV adoption in the U.S., dealers are on the front lines of a critical transition— trying to convert price-sensitive shoppers into first-time EV buyers as automakers roll out entry-level electric vehicles.
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Between the lines: The challenge for legacy players like Ford and GM lies in achieving profitability through scale and vertical integration (something Tesla has arguably mastered) while newer or smaller automakers often lack the volume or cost efficiencies to break even.
GM estimated that it lost roughly $2.5 billion on the 189,000 electric vehicles it built and sold to dealerships in 2024.
In February, Ford projected up to $5.5 billion in losses on its electric vehicle and software operations this year—a figure similar to 2024.
Adjusting EV strategies has also proven costly, with GM reporting last Tuesday that it is taking losses totaling $1.6 billion related to planned changes to its electric vehicle lineup as it recalibrates operations to align with shifting market realities.
What they’re saying: “Demand has grown more slowly than expected, and that’s likely to continue given the elimination of consumer incentives and regulatory changes,” said James Cain, executive director for finance and sales communications at GM (via NBC News).
James Cain
Bottom line: EV affordability is emerging as the make-or-break factor in driving mass adoption. But with legacy automakers like Ford and GM still struggling to build EVs profitably, dealers face a balancing act—moving entry-level electric models while manufacturers work through cost and scale challenges that could shape supply, pricing, and margins in the months ahead.
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