Plug Power (NASDAQ:PLUG) stock is in focus on Tuesday as shrinking U.S. electric vehicle demand and President Donald Trump's rollback of the $7,500 tax credit weigh on the industry. Automakers cut prices and scaled back plans, while analysts flagged Plug's cash burn and margin risks, despite the company’s more substantial second-quarter revenue.

Ford Motor (NYSE:F) and South Korea's SK On shifted strategy at their new Kentucky battery plant, seeking outside buyers to absorb excess supply as U.S. EV demand weakens. The facility, built initially to support Ford's EV lineup, now aims to serve energy storage firms and other automakers. At the same time, Ford delayed new models and scaled back expansion plans to cut losses and push for profitability in its electric business, Bloomberg reported on Tuesday.

Global EV and plug-in hybrid sales surged 24% in June, driven by strong demand in China and Europe, Reuters reported Tuesday, citing Rho Motion. In contrast, U.S. sales slipped 1% as Trump's spending bill eliminated the EV credit, dampening momentum. Sales also slowed in Canada, marking the first time North America trailed regions such as Southeast Asia and Latin America.

The UK pledged over $1 billion in subsidies and charging upgrades to boost adoption. At the same time, Trump's rollback of incentives and relaxed fuel economy rules threatens the growth of EV makers in the U.S. Sluggish Tesla (NASDAQ:TSLA) sales have already led Panasonic to delay its U.S. battery expansion.

The weakness in demand further prompted EV makers to offer discounts to win market share. U.S. new EV prices fell 2.2% in July as automakers rolled out steep discounts before the federal EV credit expired. The Kelley Blue Book reported the average EV price dropped to $55,689, down 4.2% YoY, while incentives surged 40% to a record 17.5% of ATP. Tesla led with a 9.1% YoY price cut, bringing its average to $52,949.

Chinese EV maker Nio (NYSE:NIO) cut prices across its long-range lineup in response to Tesla's new six-seat Model Y L SUV launch. The company reduced the price of its optional 100-kWh long-range battery pack by 20,000 yuan ($2,780), lowering costs on all its long-range models. Effective August 19, the adjustment drops the pack's price from 128,000 yuan to 108,000 yuan, according to CnEV Post.

Plug Power stock plunged 25% year-to-date. JPMorgan analyst Bill Peterson maintained a Neutral rating on Plug Power after the company’s second-quarter results showed stronger-than-expected revenue but heavier cash burn. He highlighted progress on orders, cost cuts, and projects, yet warned that margin uncertainty and balance sheet risks keep the stock's outlook cautious.