Sharp drop in electric vehicle sales in the US after the end of federal credits [View all]

Source: Market Screener

Sharp drop in electric vehicle sales in the US after the end of federal credits

Esteban Tesson
Published on 11/03/2025 at 12:34 pm EST



Sales of 100% electric vehicles fell sharply in the United States in October, a direct consequence of the elimination of the federal tax credit of up to $7,500. Ford, Hyundai, and Kia were among the hardest-hit manufacturers, with declines of up to 80% compared to the previous month. At Ford, EV sales fell 25% year-on-year, with the Mustang Mach-E (-12%) and F-150 Lightning (-17%) models particularly affected.

Hyundai and Kia experienced even steeper declines, particularly for the Ioniq 5 (-80%) and Ioniq 9 (-71%) models. This sharp correction follows a period of strong demand driven by the final days of eligibility for the federal credit. Hyundai and Ford executives had anticipated such a decline, estimating that the market share of electric vehicles could fall to 5%, down from 10%-12% previously. Despite this contraction, sales of hybrid vehicles are growing, supported by a partial disengagement from the 100% electric market.

Tesla and General Motors continue to dominate the US EV market with 43.1% and 13.8% market share, respectively. However, the third quarter set a record with 438,487 electric vehicles sold, up 40.7% from the previous quarter. Initial data for October suggests a more difficult Q4, marked by a structural decline in the market in the absence of federal tax support.

Read more: https://www.marketscreener.com/news/sharp-drop-in-electric-vehicle-sales-in-the-us-after-the-end-of-federal-credits-ce7d5cd9d18df020