manufacturers must determine what kind of product they can build to bring back entry-level buyers. Strand predicts, “The big story for 2026 will be around used EVs. Under the tax credit scheme, only leases really made sense. As those leases are returned, we expect a few million EVs to hit the market over the next three years. We’re not sure what values will look like, but these cars may be affordable enough to entice some reticent buyers off the sidelines. These returns would create a new opportunity for millions of EV-wary buyers to set aside their apprehensions and experience driving an EV at a very attractive price.” Without tax subsidies, EV adoption will be an uphill climb for the foreseeable future. EV and even plug-in hybrid production are being de-emphasized. Full-size EV pickups have largely failed in real-world use cases due to range, charging access and the challenges of rural operation. The center of gravity is shifting back towards traditional hybrids as a bridge technology. For now, internal combustion engines will remain the king of the road, in part because they are generally cheaper to build, and affordability is key. Truist Bank, Member FDIC. ©2026 Truist Financial Corporation. Truist, the Truist logo, Truist Purple, Truist One, Truist Marquee, LightStream and the LightStream logo are service marks of Truist Financial Corporation. Equal Housing Lender. Comments regarding tax implications are informational only. Truist and its representatives do not provide tax or legal advice. You should consult your individual tax or legal professional before taking any action that may have tax or legal consequences. TAKE US ANYWHERE! Scan to read the most recent publication. Stay up to date from your couch, office or even the moon! Place a 1” x 1” QR Code White on Black Here to the main website CATA UP TO SPEED 26
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