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Americans want a variety ... of crossovers.

America’s electric car market has a new champion. The automaking alliance of Hyundai Motor Group and Kia Motors is now the second biggest seller of electric cars in the United States, according to new data released last week by Bloomberg BNEF.
The two companies sold more than 117,000 electric vehicles in the United States last year, or about 8% of all new EVs nationwide, according to the research firm. Only Tesla, the industry’s longtime leader, sold more electric cars: It still commands about half of U.S. market share.
The two companies’ success is an encouraging sign in what was more broadly a weird year for the EV market. Scarcely more than a year ago, the public’s demand for electric cars overwhelmed available inventory, and dealers were selling every EV they could get their hands on.
But as gas prices have fallen, the growth in EV sales in the United States has slowed, and the market has gotten more uneven. Tesla, looking to shore up its market position, launched a price war last year that juiced sales but cut deep into its profits. Ford and General Motors, meanwhile, are suffering anemic sales and cutting back on their short-term EV plans.
Amid this patchy landscape, Hyundai and Kia’s growth stands out. While the two companies are technically independent, Hyundai owns about a third of Kia Motors, and they collaborate on vehicle design, engineering, and manufacturing. They also use the same vehicle “platforms,” a common set of parts that can be used across models.
Since the news came out last week, I’ve seen climate people on Twitter and elsewhere try to explain why it’s happening. Many of these explanations conform to the views that the urban, progressive climate commentariat already hold about the car market. Look, Hyundai and Kia are winning because they’re making smaller cars, not behemoth SUVs.
But the answer, while not quite the opposite, doesn’t line up with what many might wish. In fact, Hyundai and Kia are dominating the EV market right now by churning out a mostly unbroken stream of crossover and SUVs. All but one of their electric cars qualifies as an SUV or crossover; all of their plug-in hybrids are SUVs. It is this commitment to repetition — to giving the consumer a lot of choices on a central theme — that sets their product lines apart right now.
You can see the importance of this by looking at their models in more depth. Take the Hyundai Ioniq 5 and the Kia EV6, for instance, which have led EV sales at the two brands and which are built on the same platform. Each is an electrified take on the type of car that, for years now, Americans haven’t been able to get enough of: the compact crossover SUV. The Ioniq 5 and EV6 each have two rows of seating and 25 cubic feet of trunk space. They drive more or less like a car, sit high on the road like an SUV, and fall in the broad category of cars that — as a friend’s wife puts it — looks like a fist with its thumb stuck out.
The Ioniq 5 and EV6 are also really, really similar to the Mustang Mach E, Ford’s attempt at an electric crossover. In fact, if you look only at specs, they’re basically the same car. All three have the same length and width and take up about 95 square feet of road space. All three have five seats. All three have roughly the same size trunk, although the Ford’s is maybe slightly bigger. And all three have an entry-level model starting at about $42,000 — although the lowest trim Ford has slightly more range and horsepower, and costs about a grand more.
As you might expect from those specs, the Mach E narrowly outsold the Ioniq 5 and EV6 in the United States last year. Ford sold more than 40,000 Mach Es in 2023, while Hyundai moved nearly 34,000 Ioniq 5s and Kia sold 19,000 EV6s. But here’s the thing: The Mach E did not outsell the Ioniq 5 and EV6 combined. And unlike Ford, which only sells one electric SUV, Hyundai and Kia continued to flood the zone with SUV options for consumers.
How many options? Hyundai sold plug-in versions of its Tuscon and Santa Fe SUVs. Kia sold an electric version of its subcompact Niro SUV and a plug-in hybrid version of its Sportage SUV. And even though Kia only started selling its new three-row SUV, the EV9, in December, it had already delivered more than 1,000 of them by the end of the year.
In fact, only one electric car from Hyundai-Kia — the new Ioniq 6 — was designed like a traditional sedan. But it made up only around 8% of the alliance’s total sales. Hyundai and Kia achieved their commanding position by giving Americans what they want: a seemingly endless stream of SUVs and crossovers.
Now, it matters here that Kia and Hyundai are two different companies, so there is some automatic duplication in their product lines. It might never make sense for Ford or GM to sell cars as similar as the EV6 and Ioniq 5. But if we’re being honest, their SUV lineups are already pretty duplicative: Do most consumers understand the difference between a Ford Edge and a Ford Escape? There’s no reason Ford couldn’t add an Escape EV to its lineup — something a little smaller and a little cheaper. That’s exactly what Kia does with the EV Niro, after all.
It helps, too, that lots of Kia and Hyundai’s cars look like great deals for consumers. Many of their key offerings hover in the high $30,000s to mid $40,000s, seemingly the sweet spot for new family cars today. Even though Hyundai and Kia’s cars don’t qualify for the new EV tax credit, Americans can use the $7,500 federal tax credit if they lease a vehicle instead.
Hyundai especially has used this credit — and a creative mix of rebates and low-interest-rate offers — to bring down the monthly payment for consumers. (Nearly half of new Ioniq 5s are leased, according to BNEF, which is a much higher rate than normal for Hyundai’s cars.)
Finally, it helps that Kia and especially Hyundai are making more interesting-looking vehicles than any other automaker right now. Compared to the staid peoplemover that is, say, the Volkswagen ID.4, the Ioniq 5 is striking, novel, and seems to push EV design forward. Its pixelated taillights are unlike anything else on the road, and it’s an extremely charismatic vehicle to drive; it’s just a better product, overall, than other cars out there.
And that might be the most important lesson behind Hyundai and Kia’s success. For the past few decades, decarbonization advocates have gotten used to thinking about electric cars primarily as a market abstraction: Are they cheap? Are they available? Are they growing as a sector? But as the EV transition continues, we are going to have to think about them more as products, as specific tools that can improve someone’s life by their presence. The EV companies that ultimately win will make better products than their competitors — cars that bring together capability, design, and price in a special way. Right now, Hyundai and Kia are pushing to the front of that race.
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The market is reeling from a trio of worrisome data center announcements.
The AI industry coughed and the power industry is getting a cold.
The S&P 500 hit a record high on Thursday afternoon, but in the cold light of Friday, several artificial intelligence-related companies are feeling a chill. A trio of stories in the data center and semiconductor industry revealed dented market optimism, driving the tech-heavy NASDAQ 100 down almost 2% in Friday afternoon trading, and several energy-related stocks are down even more.
Here’s what’s happening:
Taken together, the three stories look like an AI slowdown, at least compared to the most optimistic forecasts for growth. If so, expectations of how much power these data centers need will also have to come down a bit. That has led to notable stock dips for companies across the power sector, especially independent power producers that own power plants, many of whose shares have risen sharply in the past year or two.
Shares in NRG were down around 4.5% on the day on Friday afternoon; nuclear-heavy Constellation Energy was down over 6%; Talen Energy, which owns a portfolio of nuclear and fossil fuel plants, was down almost 3% and Vistra was down 2%. Shares in GE Vernova, which is expanding its gas turbine manufacturing capacity to meet high expected demand for power, were down over 3.5%.
It’s not just traditional power companies that are catching this AI chill — renewables are shivering, as well. American solar manufacturer First Solar is down over 5%, while solar manufacturing and development company Canadian Solar is down over almost 9%.
Shares of Blue Owl, the investment firm that is helping to fund the big tech data center buildout, were down almost 4%.
The fates of all these companies are deeply intertwined. As Heatmap contributor Advait Arun wrote recently, ”The commercial potential of next-generation energy technologies such as advanced nuclear, batteries, and grid-enhancing applications now hinge on the speed and scale of the AI buildout.” Many AI-related companies are either invested in or lend to each other, meaning that a stumble that looks small initially could quickly cascade.
The power industry has seen these types of AI-optimism hiccups before, however. In January, several power companies swooned after Chinese AI company DeepSeek released an open source, compute-efficient large language model comparable to the most advanced models developed by U.S. labs.
Constellation’s stock price, for example, fell as much as 20% in response to the “DeepSeek Moment,” but are up over 45% this year, even factoring in today’s fall. GE Vernova shares have doubled in value this year.
So it looks like the power sector will still have something to celebrate at the end of this year, even if the celebrations are slightly less warm than they might have been.
Activists are suing for records on three projects in Wyoming.
Three wind projects in Wyoming are stuck in the middle of a widening legal battle between local wildlife conservation activists and the Trump administration over eagle death records.
The rural Wyoming bird advocacy group Albany County Conservancy filed a federal lawsuit last week against the Trump administration seeking to compel the government to release reams of information about how it records deaths from three facilities owned and operated by the utility PacifiCorp: Dunlap Wind, Ekola Flats, and Seven Mile Hill. The group filed its lawsuit under the Freedom of Information Act, the national public records disclosure law, and accused the Fish and Wildlife Service of unlawfully withholding evidence related to whether the three wind farms were fully compliant with the Bald and Golden Eagle Protection Act.
I’m eyeing this case closely because it suggests these wind farms may fall under future scrutiny from the Fish and Wildlife Service, either for prospective fines or far worse, as the agency continues a sweeping review of wind projects’ compliance with BGEPA, a statute anti-wind advocates have made clear they seek to use as a cudgel against operating facilities. It’s especially noteworthy that a year into Trump’s term, his promises to go after wind projects have not really touched onshore, primarily offshore. (The exception, of course, being Lava Ridge.)
Violating the eagle protection statute has significant penalties. For each eagle death beyond what FWS has permitted, a company is subject to at least $100,000 in fines or a year in prison. These penalties go up if a company is knowingly violating the law repeatedly. In August, the Service sent letters to wind developers and utilities across the country requesting records demonstrating compliance with BGEPA as part of a crackdown on wind energy writ large.
This brings us back to the lawsuit. Crucial to this case is the work of a former Fish and Wildlife Service biologist Mike Lockhart, whom intrepid readers of The Fight may remember for telling me that he’s been submitting evidence of excessive golden eagle deaths to Fish and Wildlife for years. Along with its legal complaint, the Conservancy filed a detailed breakdown of its back-and-forth with Fish and Wildlife over an initial public records request. Per those records, the agency has failed to produce any evidence that it received Lockhart’s proof of bird deaths – ones that he asserts occurred because of these wind farms.
“By refusing to even identify, let alone disclose, obviously responsive but nonexempt records the Conservancy knows to be in the Department’s possession and/or control, the Department leaves open serious questions about the integrity of its administration of BGEPA,” the lawsuit alleges.
The Fish and Wildlife Service did not respond to a request for comment on the case, though it’s worth noting that agencies rarely comment on pending litigation. PacifiCorp did not immediately respond to a request either. I will keep you posted as this progresses.
Plus more of the week’s biggest fights in renewable energy.
1. York County, Nebraska – A county commissioner in this rural corner of Nebraska appears to have lost his job after greenlighting a solar project.
2. St. Joseph County, Indiana – Down goes another data center!
3. Maricopa County, Arizona – I’m looking at the city of Mesa to see whether it’ll establish new rules that make battery storage development incredibly challenging.
4. Imperial County, California – Solar is going to have a much harder time in this agricultural area now that there’s a cap on utility-scale projects.
5. Converse County, Wyoming – The Pronghorn 2 hydrogen project is losing its best shot at operating: the wind.
6. Grundy County, Illinois – Another noteworthy court ruling came this week as a state circuit court ruled against the small city of Morris, which had sued the county seeking to block permits for an ECA Solar utility-scale project.