US automakers pledge to sell 40%-50% electric vehicles by 2030, with a catch

Biden to sign executive order for 50% of auto sales to be all-electric by 2030.

Ford, General Motors and Stellantis (the new parent company of Chrysler, Dodge, Jeep Ram) announced on Thursday morning that they are aiming for 40% to 50% of their U.S. sales to be electric vehicles by 2030.

The move comes as President Biden is set to sign a non-binding executive order pushing for half of all vehicle sales to be electric by the same date. Tesla, which only builds electric vehicles, was not a signatory to the statement.

"This represents a dramatic shift from the U.S. market today that can be achieved only with the timely deployment of the full suite of electrification policies committed to by the Administration in the Build Back Better Plan, including purchase incentives, a comprehensive charging network of sufficient density to support the millions of vehicles these targets represent, investments in R&D, and incentives to expand the electric vehicle manufacturing and supply chains in the United States," the automakers said.

Ticker Security Last Change Change %
GM GENERAL MOTORS CO. 51.92 +1.14 +2.25%
STLA STELLANTIS NV 19.75 +0.44 +2.28%
F FORD MOTOR CO. 13.71 +0.48 +3.63%
TM TOYOTA MOTOR CORP. 182.79 +1.20 +0.66%
HYMTF HYUNDAI MOTOR CO., LTD. 42.8 -0.14 -0.33%

Biden is calling for $174 million worth of government spending to support the initiative, while Ford, GM and Stellantis have each committed $30 billion to their global electrification and autonomous vehicle plans.

However, the pledge made by the automakers includes plug-in hybrids, which combine short-range, all-electric driving with extended-range driving provided by an internal combustion engine. Stellantis is offering several models using this technology, while GM has moved away from it in favor of full-battery and hydrogen fuel cell powertrains and is looking to become all-electric in the U.S. by 2035. Ford for its part is offering all-electric. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Toyota told Reuters that the plan is "great for the environment" and added "you can count on Toyota to do our part," while Hyundai said it supports the 2030 40-50% EV sales goal.