The recent drop in electric vehicle demand that has left many automakers rethinking their electrification plans may be short-lived. New data shows that while the drop in EV sales may have forced major carmakers such as General Motors (GM) and Ford to scale down their plans amid mounting losses in their electric car divisions, the slowdown may not be as bad and won’t last as long as previously predicted.

To help cut emissions from the transportation segment, the Biden administration invested tens of billions of dollars into developing America’s nascent…

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