Detroit Auto Show 2025 highlights future of electric vehicles

Time-honored American carmakers have been showcasing their latest electric vehicle (EV) models at the highly anticipated Detroit Auto Show in the U.S. state of Michigan, expressing persistent optimism about the future of the inudstry even as consumer adoption slows.

The show, ongoing from Jan 10-20, offers a treasure trove of activities for old-school car enthusiasts. Yet, amid the familiar roar of engines and gleaming chrome, a glimpse of the future is also on display.

Cadillac has brought to viewers the Opulent Velocity, a concept car that won the Detroit Auto Show's EyesOn Design Concept car award. Bryan Nesbitt, head of design at General Motors, which owns Cadillac, articulated the vision behind this luxurious ride. 

"This was a concept we built to really look at where we want to take Cadillac, kind of the best integration of technology and innovation, and really how to make it as artful as possible for the consumer," Nesbitt said.

Brands remain hopeful that these sleek designs will attract new consumers to switch over from fossil fuel-powered cars, preventing a plunge in sales as seen in the German market, where EVs have dropped from 19 percent of new car market share in 2023, to 13 percent in 2024.

Sales in the U.S. have not quite plateaued, but they remain well behind the growth seen in China. 

"It's still growing at a very rapid pace. It's just not growing as fast as everybody had anticipated initially. And so we just have to recognize that there are a lot of other factors to make that the right propulsion system for all customers. It's part of the natural adoption curve," said Jim Baumbick, Ford's Vice President of Product Development Operations. 

Despite these challenges, industry insiders remain optimistic about the long-term allure of EVs. 

"If you've had the opportunity to drive EVs, they're pretty convincing. The instant torque, the phenomenal kind of elegance in the power delivery, they are so refined. And you couple that with some batteries that will give you some long range, and you've got something pretty exciting," Nesbitt said. 

Detroit Auto Show 2025 highlights future of electric vehicles

U.S. stocks ended lower on Tuesday as climbing U.S. Treasury yields continued to weigh on investor sentiment.

The Dow Jones Industrial Average dropped 322.24 points, or 0.65 percent, to 49,363.88. The The Standard and Poor's 500 sank 49.44 points, or 0.67 percent, to 7,353.61, and the tech-heavy Nasdaq Composite Index shed 220.03 points, or 0.84 percent, to close at 25,870.71.

A primary source of downward pressure came from the fixed-income market. The yield on the benchmark 10-year U.S. Treasury note climbed back above 4.6 percent, while the 30-year Treasury yield nearly touched 5.2 percent, marking its highest level in nearly 19 years.

The high-yield environment acted as a drag on high-valuation growth sectors, which are particularly sensitive to elevated interest rates. Six of the 11 primary The Standard and Poor's 500 sectors closed in negative territory, with materials and communication services leading the declines by dropping 2.27 percent and 1.58 percent, respectively. In contrast, the healthcare sector gained 1.09 percent and the energy sector advanced 1.03 percent.

Market participants are also focusing on Wednesday's upcoming after-hours earnings release from Nvidia.

U.S. stocks close lower amid rising yields