Facing threats from Trump and tariffs, is NC's EV transition in trouble?

AI-assisted summary
• Despite political actions that could favor gas-powered cars, the electric vehicle (EV) industry continues to grow in North Carolina and the United States.
• Concerns about charging infrastructure and political headwinds could slow down EV adoption, but industry experts believe the shift to electric vehicles is inevitable.
• Sales of EVs are increasing nationally, with more models offering longer driving ranges, making them a more attractive option for consumers.

Electric vehicles have been in the news a lot recently, and not just because of Tesla owner Elon Musk's involvement in Washington, D.C.

Even before November's election, EVs were seen as either the wave of the future by Democrats or threats to the country's traditional automotive industry by Republicans.

Since then, the Trump administration has adopted or proposed policies that seemingly tilt the balance back in favor of gas-powered cars, although tariffs threatened by the new administration could put the brakes on the whole automotive sector.

“We're moving from an environment where EVs had a tailwind to where they now have a headwind, but that doesn’t mean you can’t still make forward progress," said Dr. Stephen Smith, executive director of the Southern Alliance for Clean Energy. "It just means it might be a little more difficult." 

While it's still too soon to know what long-term impact recent policies will have on the EV industry, and data lags behind political actions, here's a snapshot of how EV sales and investments were looking in North Carolina as 2024 drew to a close.

How many EVs are in the Wilmington area and North Carolina?

According to the N.C. Division of Motor Vehicles, there were 2,474 EVs and plug-in hybrid vehicles registered in New Hanover County as of Jan. 31. The figures for Brunswick County were 1,391, and 440 for Pender County.

According to a report by Atlas Public Policy and the Southern Alliance for Clean Energy, there were roughly 110,000 EVs registered in North Carolina as of December 2024, with EVs accounting for about 7.2% of vehicle sales. That ranked the Tar Heel State No. 3 in the Southeast, behind Florida and just trailing Georgia, and No. 24 in the nation.

Nationally, EVs accounted for just over 10% of new vehicle sales last year.

The best-selling EVs brand in North Carolina was Tesla, although sales fell in the last half of 2024. Hyundai, General Motors, Ford and BMW had much smaller slices of the N.C. market.

North Carolina also is continuing to roll out new charging stations, in many cases utilizing federal grants, to fill in charging "deadspots" between major urban areas. Concerns about charger access when away from home remains one of the biggest concerns consumers have about switching to an EV. According to the study, the state has seen an annual growth rate of 29% in charging ports, ranking it No. 3 in the Southeast and No. 25 in the country.

What about EV manufacturing in N.C.?

While the Southeast in general trails the rest of the country in EV adoption, it is ahead of the curve in landing plants and other manufacturing associated with building the next generation of vehicles.

"The Southeast is growing strongly, even though it includes some very conservative states," Smith said. "I don't think actions by the Trump administration are going to be able to stop this."

According to the Atlas/Clean Energy report, North Carolina has seen nearly $20.4 billion in EV investment, ranking the state No. 2 in the Southeast behind Georgia.

That corresponds to an estimated 16,250 jobs, with an annual growth rate of 4%.

Major EV investments in N.C. include Toyota's $14 billion battery plant in Randolph County; the VinFast EV car plant in Chatham County - although that project has been delayed; and the $650 million Epsilon Advanced Materials battery plant in Brunswick County that's expected to eventually employ nearly 500.

What about the future?

With many auto manufacturers already having made major investments in EV plants and associated projects, the march toward an electric future isn't likely to be scrapped.

But it could get bumpy in the near-term.

With any disruptive technology, and EVs are certainly disrupting the century-old reign of the traditional combustion engine-powered car, there will be stops and starts and strong, often emotive reactions.

But Smith said it's obvious that EVs are the future of the industry, and the more the U.S. stalls the more it allows competitors − notably China − to grow its lead in the market.

Slowing the transition away from traditional tailpipe vehicles also delays N.C. stated goal to reduce its greenhouse gas emissions. The transportation sector is responsible for roughly 36% of the state's greenhouse gas emissions, according to the latest state report. Former Gov. Roy Cooper announced a goal in 2018 of at least 80,000 “zero-emission” registrations by 2025, which the state has passed. In January 2022, the then-governor decided to raise the bar by announcing he wanted to see 1.25 million zero-emission vehicles by 2030.

That goal could be hard to reach, especially in the current political climate. But there are signs the EV revolution is picking up momentum, regardless of political views. Toyota reported U.S. sales of just over 1 million electrified vehicles in 2024, a 53% year-over-year increase. Electrified vehicles and hybrids accounted for 43.% of the 2.3 million vehicles it sold in the U.S. last year. 

According to the Argonne National Laboratory, a branch of the U.S. Department of Energy, 1.5 million EVs were sold in the U.S. in 2024, an 8% increase over 2023, and there are more than 5.7 million EVs on the road. Customers also have a choice of nearly 100 EV models today, including 19 from 11 different manufacturers that have a driving range of 300 or more miles.

Smith said its statistics like that and the recent report by his organization show the growing strength and economic clout of the EV market in the U.S.

"And EV vehicles are only getting better, and more people are having better experiences with them," he said. "I don't think this can be stopped. I think the horse has left the barn.

"But political headwinds could definitely slow things down, though."

Reporter Gareth McGrath can be reached at GMcGrath@Gannett.com or @GarethMcGrathSN on X/Twitter. This story was produced with financial support from the Green South Foundation and the Prentice Foundation. The USA TODAY Network maintains full editorial control of the work.