Introduction

The US electric vehicle market is experiencing a convergence of forces that will directly shape charging infrastructure demand in Los Angeles and across the country: more than 300,000 electric vehicles are expected to come off lease in 2026, driving used EV prices down and making electric ownership accessible to a significantly broader base of consumers, while Toyota has committed $1 billion to build its first and second American-made EVs at its Kentucky plant. At the same time, Volkswagen has recalled 94,000 electric vehicles globally over battery fire risk, a growing list of automakers are canceling or delaying their EV models in the US market amid tariff pressure and shifting policy, and ChargePoint's market capitalization has collapsed from $8 billion to $146 million, signaling that the EV charging industry is entering a period of consolidation where only operators with sustainable business models will survive. At Shaffer Construction, Inc., we help Los Angeles property owners build charging infrastructure that serves the expanding EV driver population, using equipment and installation practices designed for long-term reliability regardless of which charging operators or vehicle manufacturers lead the market in the years ahead.

More Than 300,000 Off-Lease EVs Will Flood the Used Market in 2026, Expanding Charging Demand

The US used electric vehicle market is experiencing a historic supply surge as more than 300,000 EVs are expected to come off lease in 2026, with some estimates from data firm Recurrent projecting the number could reach 500,000 units. As InsideEVs reported, JD Power projects returning EV lease volumes will increase 230 percent in 2026 compared to the previous year, reflecting the heavy leasing activity of 2022 and 2023 when federal tax credits and manufacturer incentives pushed consumers into three- and four-year agreements. Used EV prices have already fallen approximately 35 percent since 2022 to an average of $34,600 according to CarGurus, and analysts expect prices to drop an additional $1,500 to $2,500 as supply overwhelms demand at wholesale auctions.

February 2026 saw nearly 31,000 used EVs sold in the US, a 29 percent increase compared to the same month a year earlier, with Tesla leading by a wide margin at over 12,000 retail units sold at non-Tesla dealerships. The vehicles entering the market are primarily 2022 and 2023 models with approximately 25,000 miles, and federal law mandates a minimum eight-year, 100,000-mile battery warranty on all EVs sold in the United States, meaning most returning vehicles carry four to six years of remaining coverage. For many consumers who have been priced out of new EV purchases, especially after the federal $7,500 tax credit expired in September 2025, the used market represents the most accessible entry point yet for electric vehicle ownership. As we reported in our coverage of rising gas prices driving EV consideration to its 2026 high, the convergence of elevated fuel costs and more affordable used EVs is creating a wave of new electric vehicle owners who will need residential and workplace charging infrastructure. For Los Angeles property owners, this means that demand for residential EV charger installation is likely to accelerate as first-time EV buyers seek reliable home charging solutions for their newly acquired vehicles.

Toyota Invests $1 Billion in Kentucky and Indiana to Build First American-Made Electric Vehicles

Toyota Motor Corporation announced a $1 billion investment split between its Georgetown, Kentucky, plant and its Princeton, Indiana, facility to prepare for the production of battery-electric vehicles on American soil for the first time. As Electrive reported, $800 million will go to the Georgetown plant, Toyota's largest vehicle production facility worldwide with nearly 10,000 employees, to modernize assembly lines for the all-electric Highlander SUV scheduled for late 2026 and a second unidentified electric model that industry observers speculate could be a battery-electric RAV4. The remaining $200 million is allocated to Indiana to expand production capacity for the Grand Highlander. The announcement coincided with the Georgetown plant's 40th anniversary and is part of Toyota's broader $10 billion multiyear commitment to US manufacturing.

Toyota's investment is significant for the charging infrastructure market because it signals that the world's largest automaker by volume is committing substantial capital to domestic EV production at a time when several competitors are retreating from their electrification plans. The electric Highlander will target one of the most popular vehicle segments in the American market, and Toyota's extensive dealer network and brand loyalty mean that the vehicles produced in Kentucky will reach consumers across every demographic and geography, including many first-time EV owners who will need charging infrastructure at their homes and workplaces. For commercial property owners in Los Angeles, Toyota's entry into American EV production with mainstream models reinforces the long-term trajectory toward electrification and validates continued investment in on-site charging infrastructure that will serve a growing and diversifying population of EV drivers.

Volkswagen Recalls 94,000 Electric Vehicles Globally Over Battery Fire Risk

Volkswagen Group has issued a global recall affecting 94,031 electric vehicles across its ID.3, ID.4, ID.5, ID. Buzz, and Cupra Born models due to potentially faulty battery modules that can limit driving range or pose a fire risk. As Electrek reported, the German motor vehicle authority KBA identified that the high-voltage battery can in rare instances overheat, potentially resulting in a fire, with affected VW-brand vehicles produced between June 2023 and August 2024 and Cupra Born units produced between February 2022 and April 2024. In Germany alone, approximately 28,000 vehicles are affected, and a separate US recall filed with NHTSA in January 2026 already covered 43,881 ID.4 models from the 2023 through 2025 model years. Volkswagen's remedy involves inspecting battery modules, installing software updates, and replacing individual high-voltage modules as needed through authorized dealerships.

While the recall addresses a manufacturing defect rather than a systemic issue with EV technology, it underscores the importance of battery safety and the critical role that properly designed and installed electrical infrastructure plays in supporting EV charging. Charging equipment installed by qualified electrical contractors following current National Electrical Code requirements provides the protection systems, including ground fault protection, overcurrent protection, and properly rated circuits, that help ensure safe charging regardless of the vehicle connected. As we discussed in our analysis of the 2026 EV Charging Summit's focus on execution and reliability, the quality of charging infrastructure matters as much as the quality of the vehicles themselves, and properties equipped with professionally installed charging stations built to code standards provide an additional layer of safety for every EV driver who charges there. Shaffer Construction ensures that every charging installation meets or exceeds current NEC requirements, providing Los Angeles property owners with infrastructure that prioritizes safety from circuit breaker to connector.

Growing Wave of Canceled and Delayed EVs Reshapes the US Market Landscape

The list of electric vehicles canceled, delayed, or withdrawn from the US market continues to grow in 2026 as automakers respond to tariff pressure, the expiration of federal tax credits, and shifting consumer demand. As InsideEVs documented, recent casualties include the Volvo EX30, which will be discontinued in the US after the 2026 model year following Volvo's decision to shift production from China to Belgium to avoid 100 percent tariffs only to face an additional 25 percent blanket tariff on imported vehicles; the Acura RSX, which was canceled just months before its planned debut despite Honda's $700 million investment in its Ohio assembly plant; and the Volkswagen ID. Buzz, which is skipping the 2026 model year in the US amid what VW described as a careful assessment of current EV market conditions. Honda has also scrapped its entire initial 0 Series lineup for the US, including the 0 Sedan and 0 SUV, while the Kia Niro EV has been discontinued and the Hyundai Ioniq 6 has been largely eliminated from US inventory.

For the charging infrastructure market, these cancellations create a paradoxical dynamic: while fewer new EV models are available in the near term, the vehicles that remain on sale and the millions of EVs already on American roads continue to drive growing demand for charging infrastructure. Ford's BEV sales are down 70 percent year-to-date and Honda's have dropped 81 percent, but the cumulative installed base of approximately 5.8 million EVs in the US continues to generate increasing charging demand regardless of new vehicle sales trends. As we noted in our coverage of the federal 30C charger tax credit deadline, the business case for charging infrastructure is driven by the total number of EVs in service rather than monthly sales figures, and properties that install charging now while federal and state incentives remain available are making investments that will serve a growing driver population for years to come regardless of near-term fluctuations in the new vehicle market.

ChargePoint's Market Collapse Signals EV Charging Industry Consolidation

ChargePoint Holdings, once valued at more than $8 billion when it went public through a SPAC merger in 2021, has seen its market capitalization fall to approximately $146 million as of February 2026 after executing a 1-for-20 reverse stock split in July 2025 to avoid delisting from the New York Stock Exchange. As Charged EVs reported in its analysis of how the biggest US charging networks were built, ChargePoint has never produced an annual profit since going public, reporting a net loss of $277 million on $417 million in revenue for fiscal year 2025 and seeing its cash reserves decline from $325 million to $225 million. The company completed a debt restructuring that reduced outstanding obligations by $172 million but required exchanging convertible notes for a senior secured loan that extends maturity to 2030, and its hardware-centric business model with 24 percent gross margins lags significantly behind the software-driven recurring revenue models that Tesla and ABB have built.

ChargePoint's struggles are not unique. The broader EV charging industry is entering what analysts at the 2026 EV Charging Summit predicted would be the first wave of consolidation, with smaller charging point operators expected to be acquired by larger networks or exit the market entirely in 2026 and 2027. More recent quarterly results show signs of stabilization, with ChargePoint's Q4 fiscal 2026 revenue reaching $109.3 million, up 7 percent year-over-year, and subscription revenue growing 13 percent, but the path to profitability remains uncertain. For Los Angeles property owners making infrastructure investments, the lesson from ChargePoint's experience is that choosing charging equipment and installation partners based on long-term reliability and open standards rather than a single network operator's brand provides the most durable investment. Shaffer Construction installs charging infrastructure using industry-standard equipment that operates independently of any single network provider, ensuring that property owners' investments retain their value and functionality regardless of which charging companies lead the market in the future.

Conclusion

This week's developments paint a picture of an electric vehicle market in transition, where the growing installed base of EVs and a flood of affordable used vehicles are sustaining charging demand even as some automakers retreat from their most ambitious electrification plans. More than 300,000 off-lease EVs entering the used market will bring new EV owners who need charging infrastructure, Toyota's $1 billion investment in American EV production confirms that the world's largest automaker sees long-term value in electrification, and Volkswagen's 94,000-vehicle recall highlights the ongoing importance of safety in both vehicle and infrastructure design. The wave of EV cancellations reflects near-term market headwinds rather than a fundamental change in the direction of transportation electrification, and ChargePoint's financial struggles signal that the charging industry is maturing toward a model where sustainable operations and reliable service matter more than rapid growth.

Ready to invest in EV charging infrastructure that serves the growing population of electric vehicle drivers in Los Angeles? Shaffer Construction, Inc. provides expert design, permitting, and installation services for commercial and residential charging systems, built with industry-standard equipment and code-compliant electrical work that protects your investment for the long term.

Shaffer Construction, Inc.
325 N Larchmont Blvd. #202
Los Angeles, CA 90004
Phone: (323) 642-8509
Email: [email protected]
Website: www.shaffercon.com