Shifting winds have hit the automotive market. After years of unit growth for battery-powered electric vehicles (EVs), the sector has begun to stagnate. New unit sales for EVs were growing 51% year over year less than a year ago. In the first quarter of 2024, that growth rate collapsed to zero, meaning the number of EVs sold in the United States was the same as a year ago.

What is replacing this growth? Plug-in hybrids. The versatile technology that brings battery charging and gasoline-powered engines to the same vehicle is growing north of 50% year over year, making up the majority of growth for the automotive market in 2024. This has inspired Ford (NYSE: F) to scrap plans for an all-electric SUV, replacing the upcoming model with a plug-in hybrid.

Does this spell trouble for full EV upstarts such as Rivian Automotive (NASDAQ: RIVN), a company betting on all-electric pick-up trucks and SUVs? Let's investigate further and find out.

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Source Fool.com