The popular automaker says it's re-evaluating its plans to build EVs
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EV enthusiasm is fading fast, with falling sales and plummeting used electric vehicle values prompting automakers to rethink their strategies.
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Subaru is tapping the brakes on electrification, citing market uncertainty, tariff complications, and potential cuts to federal EV tax credits.
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Unstable trade policies and vanishing incentives are making automakers wary of major investments in EV production amid declining consumer demand.
Automakers have been noticed and are acting accordingly. The latest to begin tapping the brakes is Subaru, whose rugged andunpretentious cars have a large and loyal following.
Not known for speed, Subaru was already proceeding cautiously on electrification and now says it may even slow down a little more. This is not exactly a full panic stop; Subaru has only one EV right now, the Solterra. There's supposed to be an Outback-sized model called the Trailseeker out for 2026 but it's unlikely there'll be any more in line, at least for now.
Tariffs and tax credits
It's enervating enough that public acceptance of electrification seems to be slipping, now there are those pesky tariffs and tax credits to worry about. Pricing has been a problem for EVs since Day One and if it weren't for the tax credits granted to most EV buyers, the things would have been drained of juice long ago.
Big corporations like certainty, especially when they're thinking about spending a few hundred million dollars or more to build or retrofit a factory and introduce a new product, with all the expenses that entails.
So the on-again, off-again tariffs are causing headaches for just about everyone who imports products and parts. In Subaru's case, they build about half their cars in Indiana but the rest are imported, making them subject to Trump's tariffs. So there's that to worry about.
Upping production of EVs will most likely require a new plant or extensive retrofitting of an old one, leading to the question of where such a plant would be located. A wrong decision could be ruinous and speculation is the company will just stay in second gear while it waits for a more decisive tariff situation.
Then there are those tax credits. The Trump administration wants to get rid of them or reduce them sharply, which could increase the driveaway price of an EV by $7,500 or so.
Subaru's sales have been off about 4 percent and the company is understandably reluctant to take any big risks in the current state of turmoil.
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Posted: 2025-05-19 18:53:55



















