Daimler Truck North America, maker of the Freightliner eCascadia and other electric models, is pushing forward with its product development plans. “All previously communicated plans remain unchanged,” a company spokesperson said. (DTNA)
The ongoing rollback of commercial vehicle emission regulations under the second Trump administration has created uncertainty in the emerging battery-electric truck market. Manufacturers continue to produce their latest electric models and invest in the technology, but many fleets remain hesitant.
Robert Braswell, executive director of American Trucking Associations’ Technology & Maintenance Council, said before President Donald Trump returned to the White House, the industry had a great deal of interest in electric vehicles, largely driven by regulations.
“Once the winds shifted in the regulatory front, that interest seems to have waned,” he said. “I think the general story that we hear anecdotally is that if it’s going to be mandated, yeah, you’ve got to comply with the rules.”
Braswell contends that slow adoption rates could be due to fleets struggling to find a viable return on investment.
“If it doesn’t make sense for my application, adoption is something we’re not going to do unless we absolutely have to do,” he explained.
Trump’s day-one executive order, “Unleashing American Energy,” set in motion a plan to eliminate electric vehicle mandates and promote “true consumer choice” while reconsidering Biden-era subsidies that support EV adoption.
“Once the winds shifted in the regulatory front, that interest [in electric vehicles] seems to have waned,” says TMC Executive Director Robert Braswell. (Blake Franco/American Trucking Associations)
The EO directed the Environmental Protection Agency to reconsider its climate change endangerment findings in 2009. If overturned, greenhouse gas emissions would no longer be considered pollutants and no longer would be regulated by EPA under the Clean Air Act.
In May, Congress voted to nullify waivers that allowed California to set its own stricter vehicle-emission standards, including lower nitrogen oxide emission limits and the Advanced Clean Trucks rule, which has required medium- and heavy-duty truck manufacturers to sell increasing percentages of zero-emission vehicles through 2036.
The changes mean fleet managers and their partners “have moved into a phase of peak uncertainty,” according to The State of Sustainable Fleets 2025 Market Brief, a report by environmental consulting and energy engineering firm TRC Cos.
ICYMI: The 3 California vehicle emissions waivers disapproved by the House & Senate will go to @POTUS’ desk! Once signed, President Trump will officially have ELIMINATED the EV Mandate. Powering the Great American Comeback, driving down costs and ensuring Americans have CHOICE… pic.twitter.com/PDkW1dbSZg
— U.S. EPA (@EPA) May 22, 2025
ATA has applauded the regulatory changes.
“The Advanced Clean Truck rule was really setting the industry up for failure,” said Patrick Kelly, ATA’s vice president of energy and environmental affairs. “There’s just not the infrastructure or the ability for trucking fleets to adopt that many electric trucks.”
Kelly said fleets likewise support what the administration and Congress are doing. Most fleets that have introduced battery-electric trucks are operating only a few of those vehicles and need a return on investment to justify the purchase.
Kelly said uncertainty remains about how EPA will proceed and about its authority to regulate greenhouse gas emissions. ATA would like to work with the U.S. Department of Transportation to develop achievable, cost-effective fuel economy standards.
ATA President & CEO spoke with @RoadDogTrucking‘s Mark Willis about @POTUS‘ repeal of California’s EV mandates and what it means for trucking and the supply chain. pic.twitter.com/Sakt0XdmpT
— American Trucking (@TRUCKINGdotORG) June 26, 2025
The federation expects some states will try to incentivize or mandate electric trucks, but the industry needs a uniform national standard so fleets know they can purchase a truck anywhere and use it everywhere.
Kelly said electric trucks show promise but continue to have range and infrastructure limits. Washington should “use carrots, not sticks” to encourage and incentivize adoption, he said
“We don’t oppose electric trucks,” Kelly said. “At the end of the day, what we oppose is forcing fleets to adopt electric trucks before the market is ready and before there’s a way to recoup the additional cost that’s associated with purchasing and operating an electric truck.”
OEM Plans
While the federal government is reversing its support of electric trucks, other factors will continue to encourage or require adoption, TRC Cos.’ report said.
Seventeen states and Washington, D.C., have signed a memorandum of understanding to promote adoption of zero-emission commercial trucks. More than 600 state and local programs totaling more than $13.5 billion in funding remain available for zero- and near-zero emission projects. TRC expects the number of charging ports at shared medium- and heavy-duty hubs to nearly triple this year to 1,500. Utilities are instituting “flexible interconnect” programs letting fleets access power earlier in a project’s life cycle.
The report predicted investors and companies will seek returns on their investments. Companies have invested billions of dollars, supply chains have been formed and charging infrastructure is being developed. Walmart said in the report that it had deployed more than 1,200 battery-electric vehicles for last-mile delivery, reducing its total cost of ownership compared with gasoline-powered vehicles.
“While the policy shifts have injected uncertainty and slowed momentum, they are more likely recalibrating the pace of fleet electrification rather than fundamentally changing its direction,” the report said.
Manufacturers continue to invest in battery-electric technology.
Volvo Group North America is investing in battery-electric, hydrogen fuel cell electric and combustion engine vehicles. (Volvo Group)
Daimler Truck North America, maker of the heavy-duty Freightliner eCascadia and other electric models, is pushing forward with its product development plans, a company spokesperson said.
“All previously communicated plans remain unchanged,” the statement said. “We are committed to adhering to the requirements established by the EPA and will continue to develop our product strategy in alignment with these standards, providing a robust lineup of engines that meet both GHG [greenhouse gas] and NOx regulations.”
Volvo Group North America is investing in battery-electric, hydrogen fuel cell electric and combustion engine vehicles “regardless of the pace of regulatory change,” said John Mies, vice president of communications.
“Customers are understandably more hesitant to invest in electric trucks in this period of regulatory uncertainty,” he said, “but we still believe zero-emission technology will have a prominent place in the future of trucking.”
At the 2025 Advanced Clean Transportation Expo in April, Dan Priestley, senior manager of the Tesla Semi program, said his company is “charging forward” and remains committed to producing the battery-electric Class 8 model at full scale in 2026. Tesla is building a 1.7 million-square-foot factory in Reno, Nev., with a capacity of 50,000 units annually.
At the same event, Mack Trucks said the order book for a battery-electric version of its new Pioneer Class 8 tractor will open in 2026. It will be available in day cab or 44-inch short sleeper configurations.
Peterbilt Motors Co. unveiled its updated 579EV for drayage and regional on-highway applications, and the new 567EV serving the vocational market.
“Obviously there’s some uncertainty in terms of the regulatory [environment],” said Erik Johnson, Peterbilt’s assistant general manager of sales and marketing. “We’re on a path and we’re going to continue on the path, and for us it’s just a matter of if we have to move side-to-side a little bit.”
Kenworth Truck Co., meanwhile, launched a revamped version of its T680E with deliveries scheduled to begin later in 2025, as well as its first Class 8 battery-electric vocational truck, the T880E.
Industry Response
Mike Roeth, executive director of the North American Council for Freight Efficiency, doesn’t expect the industry to stop developing electric trucks. Most people in the industry are convinced that electric trucks are coming, although some don’t think it will happen in the heavy-duty space, he said.
The change in the regulatory environment could affect adoption, Roeth said, adding that manufacturers may slow their efforts and work on other programs if they aren’t required to sell electric trucks.
While #diesel advocates may be doing a victory lap today with changes in #emissions regulations and funding, the #electricvehicle genie is definitely out of the bottle, says Rick Mihelic in this week’s @CCJnow blog.
Read more at https://t.co/YePxXeOfGi
— North American Council for Freight Efficiency (@NACFE_Freight) June 21, 2025
“I think what I’m hearing out there is that [fleets] are not ready to do any more, particularly if there aren’t the incentives that we had for the first round of purchases, so they’re pausing it and cautious,” he said. “But they see the opportunity. They see that it’s literally a better truck. It just needs to be fine-tuned with more adoption and so forth.”
However, Roeth said a business case exists for smaller vehicles that can charge overnight, such as delivery vans. He said electric trucks offer reduced operating costs, and some shippers want carriers to use them and might pay a small rate increase.
“Anything that’s a medium Class 6 box truck up to Class 8, there’s not really a business case right now for it,” he said.
Roeth said a pause in regulations could give the industry time to find those business cases. He expressed concern about what happens if the industry pauses too long, causing EV technology to be re-engineered.
“If we just kick the can down the road and don’t do anything, and then later on, we’re back in the same boat, I think we’ll have kind of failed as an industry,” he said.
Three experts from Transport Enterprise Leasing discuss strategies for buying and selling trucks amid regulatory shifts, trade tensions and economic uncertainty. Tune in above or by going to RoadSigns.ttnews.com.
TMC’s Braswell said fleets will adopt a new technology if it helps them make money. Most new emissions regulations since the early 1990s have been accompanied by fuel economy improvements. He is seeing growing interest in renewable diesel and renewable natural gas.
“You don’t have to tell fleets twice to save fuel,” he said. “When it comes to increased costs without necessarily an improvement in the capability, that ROI calculation’s a little tougher. I think you’re going to have resistance to that because it’s mandated.”
Joe Richley, a vice president at bulk carrier Groendyke Transport and chairman of TMC’s S.18 Automated Vehicles Study Group, supports the regulatory moves by the Trump administration. He said some of the regulations, specifically in California, weren’t attainable for the average trucking company without a huge influx of research funding.
However, he does not expect the regulatory changes to bring industry adoption of electric vehicles to a halt. The trucking industry wants to be fuel-efficient and environmentally responsible, he said.
Richley noted that the industry has 120 years of experience with diesel and gasoline. Truck stops and gas stations are everywhere. The change might require a regulatory push, but not as fast as regulators were attempting.
“Everyone’s kind of taking a deep breath of a little bit of relief,” he said.
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