America’s retreat is increasing China’s control of global EV markets

DETROIT — The unraveling of the U.S. electric vehicle push is increasingly raising concerns of an existential crisis for the American auto industry, as Chinese carmakers surge ahead in the technologies that many still believe will define the next era of cars.

The latest warning sign came Friday, when Stellantis disclosed a $26 billion charge from a major business overhaul, including a pullback in EVs, triggering a more than 20% plunge in its stock. CEO Antonio Filosa blamed the hit on overestimating the pace of the energy transition.

It follows other automakers in the U.S. significantly pulling back from pure EVs in favor of large gas-guzzling trucks such as the Ford F-150 and SUVs like the Chevrolet Suburban. Chinese automakers are taking the opposite approach and are growing globally, led by EVs.

Legacy automakers General Motors and Ford Motor have lost billions of dollars on EVs and are pulling back partly because of the loss of a federal tax credit and lackluster consumer demand.

Even Tesla, which pioneered the EV industry, is facing pressure. It was surpassed by Chinese automaker BYD in EV sales as the Elon Musk-led brand lost its appeal and market share in Europe this year, while BYD ramped up exports there and around the world. Tesla also last week canceled its two oldest, lowest-selling electric vehicles to repurpose an American plant for humanoid robots.

After helming the electrification movement for years, Musk increasingly appears focused elsewhere, especially on robots, driverless taxis and his artificial intelligence company, which he combined with Space X in what was the biggest merger in history.

Meanwhile, global market share of Chinese brands has jumped nearly 70% in five years, and many experts see a threat to U.S. automakers, including the anticipated entrance of Chinese brands into America.

There’s fear among global automakers that Chinese rivals like BYD and Geely could flood global markets, undercutting domestic production and vehicle prices. The U.S. has taken a protectionist approach by implementing 100% tariffs on imported EVs from China, but Chinese automakers have made inroads across Europe, South America and elsewhere.

Companies in the U.S., where the automotive industry represents about 5% of the country’s gross domestic product, are worried about long-term implications.

“The Chinese auto industry presents an existential threat to the traditional [automakers],” said Terry Woychowski, a former GM executive who serves as president of automotive at engineering consulting firm Caresoft Global.

Several automotive experts used the word “existential” when discussing the growth of Chinese automakers.

“The existential risk to the U.S. auto industry isn’t Chinese EVs alone, it’s the combination of sustained…