Volkswagen has announced that its Chattanooga, Tennessee assembly plant will stop producing the company's fully electric SUV ID.4 starting mid-April and instead focus on producing the Atlas models, a gasoline-powered SUV. The Atlas models perform worse than the ID. 4 on fuel economy efficiency standards, using roughly 5 times more energy than the EV model it’s replacing. Volkswagen plans to continue selling whatever remaining inventory until the Atlas model is discontinued in 2027. This decision is part of a downward trend for the electric vehicle industry, which began when President Trump slashed the $7,500 electric vehicle tax credit last year. However, Chinese and European sales continue to thrive, with Chinese exports dominating most EV markets globally.