Electric vehicles (EVs) have received significant attention because of the potential energy savings and emission reductions they enable. However, current studies and demonstrations have focused mainly on specific technologies and equipment types, which cannot in themselves solve the predicaments facing EVs. This study points out that EVs will form a large, complex system that needs to be optimized over different aspects to compete with traditional vehicles. Therefore, whole-system thinking is needed to support the development control of EVs, with a broader scope than operational control, and the core issue is the interaction between EVs and power grid, including their coordinated development and operational management. For development control of EVs, a target system and a step-wise optimization method are presented, as well as the basic principles for designing the target system. There are two key barriers in EVs’ development: the research and mass production of high-performance power batteries, and the formulation of a favorable mechanism to capture benefits and encourage development. To address the problems of EV development, a promotion method that combines franchising with moderate competition is proposed. The concepts and methods developed in this study can facilitate the research and development of EVs.