Tesla rival has a disappointing message for EV fans | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Electric cars are supposed to be better for your wallet and better for the planet. Governments the world over have incentivized their adoption because of it, offering both tax credits and pushing more carmakers to add EVs to their fleet through stricter regulations on emissions and even EV vehicle mandates.

💵💰 Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💵💰

With so much attention focused on electrifying vehicles on roadways across the globe, it’s not surprising that their market share is growing.

In fact, a new report from the International Energy Agency said one in four cars sold worldwide in 2025 is expected to be electric, and EVs could account for over 40% of global car sales by 2030 if the adoption of these alternative-fuel vehicles stays on its current trajectory.

Driving electric vehicles has also become more practical, thanks to enhanced battery life as well as the increased prevalence of charging stations in parking lots across America, even in small towns and areas where you might not expect to find them.

With so much going for them, you might assume that it’s all smooth sailing for manufacturers producing electric cars. However, recent news suggests otherwise, as headline after headline shows companies are struggling with these products.

From Porsche blaming dismal EV sales for dropping profits and reportedly delaying its new wave of electric products to Ford, GM, and Mercedes all scaling back on their EV lineups, carmakers are making clear that the push to electric isn’t working out for their bottom line.

Now, more new EV plants that had been announced just over a year ago have also been put on hold, which is likely to come as yet another disappointment for those hoping for the production of more Tesla alternatives within the alternative fuel market.

Honda is putting a pause on EV plants in Canada, despite a $15 billion promise.

Image source&colon; Shutterstock

Major EV plant put on hold

Honda is one of the latest companies to deliver bad news about its EV plans.

The company had announced last year that it would be developing an electric vehicle supply chain within Canada. This project included spending $15 billion on an electric vehicle plant in Ontario, locating a standalone battery manufacturing plant in Alliston, Ontario, where it currently has facilities in operation, and building new facilities in Ottawa.

The project was slated to result in the production of 240,000 electric vehicles every year after it became operational in 2028.

Now, however, Honda says this isn’t happening – at least not right now. That’s despite the fact Ottawa had offered $2.5 billion in tax credits and Ontario had promised $2.5 billion in indirect and direct support.

While Honda claims the deal isn’t dead, the company did say that it would be on hold for at least two years.

Tariffs and low EV demand kill production

Tariffs may have played a role in the plant delay, with Honda Motor Co. reporting in its recent financial results that new tariffs expected within the United States would hurt the company’s earnings. However, it was likely the weak performance of electric vehicles that played an instrumental role in the decision to delay the new plants.

“Due to the recent slowdown of the EV market, Honda Motor has announced an approximate two-year postponement of the comprehensive value chain investment project in Canada,” Ken Chiu, a Honda Canada spokesperson, said in an email to CBC News. “The company will continue to evaluate the timing and project progression as market conditions change.”

More EV News:

It remains to be seen if Honda will eventually follow through with bringing those plants to life, and the performance of the EV market as a whole in the coming two years will likely guide carmakers’ decision about whether to eventually move forward.