The electric car boom in the United States has cooled off, with Detroit automakers suffering a heavy blow of $500 billion.

As the popularity of electric vehicles in the United States fades, American car companies are facing massive losses. The big three Detroit car companies - General Motors, Ford, and Stellantis - announced write-downs of over $50 billion in electric vehicle-related assets after a 30% decline in fourth-quarter sales. The reason for the sales decline is the expiration of the $7,500 federal tax credit. General Motors continues to reduce electric vehicle production, while Ford is shifting towards launching a low-cost electric pickup truck before 2027. Stellantis sold its battery business shares, citing a misjudgment of the pace of energy transition. The cuts in federal tax credits, relaxation of efficiency requirements, along with weak demand, have forced car companies to cancel projects, lay off employees, and shift back towards gasoline vehicles.