September ’25 Market Pulse

Electric car in front of blue, innovative technology graphs of the future.

EV Market Overview

The global EV market continues to expand, though growth has moderated compared to the rapid surge of 2021 to 2023. U.S. EV adoption is now above 12% of new vehicle sales, supported by federal tax credits, state-level incentives, and expanding charging infrastructure. However, consumer demand has cooled slightly in 2025 due to higher interest rates, affordability concerns, and slower-than-expected charging buildout.   

Automakers are adjusting strategies: legacy manufacturers are scaling back some EV production targets, while focusing on hybrid sales and profitable premium EV models. Meanwhile, Chinese automakers are aggressively entering global markets with lower-cost EVs, intensifying competition.   

At the same time, raw material costs remain elevated, particularly for lithium, nickel, copper, and cobalt. Recent tariffs on imported battery materials and components have kept prices high, limiting the pace of cost reductions for EVs. While battery technology continues to advance with solid-state and LFP chemistries gaining traction, tariff-driven input costs are a headwind for affordability. Looking ahead, the EV sector remains a long-term growth story, but near-term challenges such as pricing pressure, supply chain adjustments, raw material tariffs, and consumer hesitancy, are reshaping the competitive landscape.   

Economic Indicators (Q3 2025): 

  • GDP (Gross Domestic Product): 
    • Trend: U.S. GDP grew at 2.8% in Q2 2025, showing steady expansion.
    • Impact: Growth supports stable demand and investment confidence. 
    • Regional Note: Strength seen nationwide, with manufacturing contributing modestly. 
  • Nonfarm Payroll & Employment: 
    • Trend: July 2025 added 187,000 jobs; unemployment steady at 4.3%. 
    • Impact: Labor market cooling but still solid, easing wage pressures. 
    • Regional Note: Job gains concentrated in health care and government. 
  • CPI (Consumer Price Index): 
    • Trend: July CPI up 2.9% year-over-year, nearing Fed’s 2% target. 
    • Impact: Lower inflation eases consumer strain and supports Fed rate cuts. 
    • Regional Note: Energy prices declining, but housing costs remain high in major metro areas. 
  • PPI (Producer Price Index): 
    • Trend: July PPI rose 2.3% year-over-year, down from earlier peaks. 
    • Impact: Lower input costs relieve business margins and price pressures. 
    • Regional Note: Declines are broad-based, especially in manufacturing inputs. 

Electrified Transportation in the News

The EV and autonomous vehicle market in mid-2025 reflects a balance between rapid innovation and significant policy challenges. On the innovation front, Lucid Motors surged nearly 40% after Uber’s $300 million investment to deploy 20,000 autonomous Lucid SUVs by 2026, signaling a major push into robotaxis and renewed investor momentum (Spatacoo, 2025). Similarly, Aurora Innovation launched its first commercial self-driving trucking service between Dallas and Houston, a milestone in U.S. freight logistics that highlights both reliability and scalability. Expansion plans into El Paso and Phoenix underscore its long-term vision, with safety and redundancy at the core of its system design (Martins, 2025). 

These advancements, however, face mounting pressure from trade and policy developments. Stellantis reported a $2.7 billion loss in the first half of 2025, with approximately $300 million attributed directly to new tariffs under the “Liberation Day” trade policy. The company paused operations in Mexico and Canada, laid off 900 workers, and may shift production back to the U.S. (Chapman, 2025). Similarly, LG Energy Solution (LGES) warned of slowing North American EV demand as tariffs and the early end of federal subsidies weigh on automakers. While profits rose, LGES plans to pivot toward more profitable energy storage systems, leveraging its unique position in U.S. LFP-based ESS production (Heekyong Yang & Jin, 2025). 

Compounding these stresses, the Trump administration’s 50% tariff on semi-processed copper imports sent copper prices tumbling 18%, the steepest drop in decades (Breuninger, 2025). While intended to bolster U.S. supply, the policy is expected to raise costs for industries reliant on copper, particularly EV manufacturers dependent on copper for batteries and motors. 

Altogether, the U.S. transportation sector sits at a crossroads: innovation from partnerships and autonomous deployments is accelerating, yet tariffs and shifting policies are disrupting supply chains and dampening demand. Companies with diversified strategies, such as Aurora and LGES, are better positioned to adapt, while legacy automakers face sharper headwinds. 

References:

​Breuninger, K. (2025, July 30). Trump slaps universal 50% tariff on copper imports; metal’s price plunges . Retrieved from cnbc.com: https://www.cnbc.com/amp/2025/07/30/trump-copper-tariff-trade.html 

​Chapman, M. (July, 21 2025). Stellantis warns of $2.7 billion loss for 1st half of 2025 due to tariffs and some big charges. Retrieved from apnews.com: this:https://apnews.com/article/stellantis-tariff-trump-gm-filosa-a13b081cb947383b1c7de9ce722bedc4 

​Heekyong Yang, Hyunjoo Jin. (2025, July 25). LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds. Retrieved from Reuters: https://www.reuters.com/business/autos-transportation/lg-energy-solution-warns-slowing-ev-battery-demand-due-us-tariffs-policy-2025-07-25/ 

​Martins, V. (2025, Jul 15). Aurora Innovation Launches First Commercial Self-Driving Trucking Service in Texas. Retrieved from ainvest.com: https://www.ainvest.com/news/aurora-innovation-launches-commercial-driving-trucking-service-texas-2507/ 

​Spatacoo, A. (2025, 20 July). Is Lucid Stock a Screaming Buy After Uber’s $300 Million Robotaxi Bet? Retrieved from Yahoo Finance: https://finance.yahoo.com/news/lucid-stock-screaming-buy-ubers-051400211.html 

Writer: 

Mason King 
Market Intelligence  
ASPIRE