Gasoline-only cars now account for less than half (49%) of global new-car sales in the first half of 2026. That's down from 73% in 2021, according to Mobility Global data reported by Nikkei.
Gasoline-only vehicle sales fell 10% year over year to 20.25 million vehicles, marking a significant shift in the industry's powertrain mix.
President Donald Trump, meanwhile, maintains a "Drill, Baby, Drill" agenda, rolling back federal vehicle-emissions rules. Since 2025, his administration has ended federal clean-vehicle tax credits and eliminated federal greenhouse-gas emissions standards, reversing important policy support for EV adoption.
The contradiction comes as the U.S. continues to loosen constraints on fossil-fuel use. Recall how Trump met with oil and gas executives at his Mar-a-Lago estate in 2024 and asked them to raise $1 billion for his presidential campaign in exchange for rolling back environmental regulations and dismantling the Biden administration's green energy policies.
Trump's Oil Agenda, A Growing Disconnect
Higher gas prices strengthen the economic case for electrification. That creates different opportunities for investors in several companies:
- Tesla, Inc. (NASDAQ:TSLA) offers direct exposure to EV adoption.
- Toyota Motor Corp (NYSE:TM) offers exposure to a manufacturer with a broader mix of hybrid and conventional vehicles.
- Ford Motor Co (NYSE:F) and General Motors Co (NYSE:GM) must balance electrification investments with the profitability of their existing vehicle businesses.
- Rivian Automotive Inc's (NASDAQ:RIVN) vehicle sales totaled $1.14 billion in Q3, up 23% annually, even as average selling prices slipped because of a larger mix of commercial vans and R2 deliveries.
- The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) offers exposure to autonomous and electric-vehicle technologies, while the State Street Energy Select Sector SPDR ETF (NYSE:XLE) tracks the energy sector, including major oil and gas producers.
In China, BYD Co. Ltd. (OTC: BYDDY) (OTC: BYDDF) surpassed Tesla as the world's largest EV maker in 2025. The two companies trade the quarterly top spot quarter to quarter.
Nio Inc. (NYSE:NIO), XPeng Inc. (NYSE:XPEV) and Li Auto Inc. (NASDAQ:LI) also offer exposure, although they must currently contend with slowing domestic demand.
What's Next
The International Energy Agency expects electric cars to account for 29% of global sales in 2026, underscoring both the scale of the transition and the continued role of combustion engines in the market.
For investors, the key is not to treat falling gasoline-car share as an automatic bearish signal for oil stocks or a bullish one for every EV maker. Watch regional powertrain sales, automaker margins and capital spending to identify which businesses can profit from the transition.
The strongest investment case may belong to companies that can adapt to changing consumer demand, regardless of which energy policy Washington favors.
