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U.S. electric-vehicle sales dropped sharply after the federal $7,500 tax credit ended on Sept. 30, 2025, but industry data show a gradual recovery. The rebound is uneven: Tesla and Rivian have helped lift new-EV sales, while used EV sales have reached a record share of that market. The data do not establish that sales have returned to their previous trajectory.
U.S. electric-vehicle sales have begun to recover a year after the federal $7,500 tax credit ended, but the rebound remains uneven and depends heavily on a small number of manufacturers. Data cited by InsideEVs show EVs’ share of retail vehicle sales fell sharply after the credit expired, then climbed gradually, while used-EV sales reached a record share of the used-car market.
The expiration on Sept. 30, 2025, followed a rush by some buyers to purchase EVs before the incentive disappeared. JD Power data cited in the report put EVs at more than 14% of retail vehicle sales in September. The share dropped to 7.1% in October and 5% in November, its lowest level since 2022, before rising above 6% in December and above 8% in May. JD Power’s figure for September in the later period was 7.9%, showing the market had not returned to the earlier peak.
Other measures also point to a gradual adjustment. Cars.com data showed the average EV spent 89.4 days on dealer lots in September, down from 115.6 days in March and nearer to the 80.5 days recorded during the prior year’s buying rush. The figures suggest vehicles were selling faster, though days on lot alone do not show how much of that change came from demand, supply, pricing or model availability.
Sales gains have not been broadly shared. Cox Automotive estimated that U.S. EV sales rose 6.1% from the second to the third quarter, reaching about 262,000 vehicles, the highest quarterly level since the tax credit ended. Its estimates suggest the market would have contracted slightly over that period without Tesla. In the used market, Cox said Americans bought more than 47,000 used EVs in the latest month cited, up 21% year over year and giving EVs their largest-ever share of used-car sales. The source does not provide the month or a precise market-share percentage for that figure.
A Recovery With Uneven Winners
The sales figures matter to buyers and automakers because the tax credit had lowered the effective purchase cost for eligible vehicles. Its end changed the economics of buying an EV, and the initial fall in sales showed how much demand had been brought forward by the incentive. The later recovery suggests that the market did not stop functioning without the credit, but it does not show that every vehicle or manufacturer can sustain sales at the same pace.
The concentration of new-EV growth in Tesla and Rivian, alongside cutbacks by some traditional automakers, may narrow the range of models available to shoppers. For consumers, the growth in used EV sales offers another route into electric driving, with more recent long-range models entering the secondhand market. Still, the source material does not quantify how much of used-market growth reflects affordability, expanded supply or other factors.
Hyundai CEO José Muñoz told InsideEVs that dealers who had asked the company to reduce Ioniq 5 shipments later requested more after rising gasoline prices linked to the war in Iran. That account is an anecdote from one automaker, not evidence of a broad sales surge caused by fuel prices.
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The September 2025 Market Reset
The federal EV tax credit ended on Sept. 30, 2025, as Congress and the Trump administration also removed fuel-economy rules and other policies that had supported EV adoption, according to the report. Buyers moved purchases forward before the deadline, contributing to a spike in September sales followed by a steep decline in October and November. The comparison between those months reflects both the loss of the incentive and the pull-forward of purchases; the cited data do not isolate the effect of either factor.
Automakers responded differently. The report says legacy manufacturers canceled or delayed roughly two dozen electric models, including the Ford F-150 Lightning, Volkswagen ID.4 and Honda Prologue. Companies with EV-only lineups could not shift customers to gasoline models in the same way. Toyota was a counterexample among traditional automakers, with EV sales growing as it introduced new models, according to the report. This mix of product decisions helps explain why industry-wide figures mask differences between brands.
“All of a sudden, you either add the incentive, or you lose sales, or you do something in between.”
— José Muñoz, Hyundai CEO, speaking to InsideEVs
How Durable Is the Rebound?
The cited figures do not establish whether the recovery will continue, or whether EV sales will regain the share they held during the pre-expiration buying rush. The report provides different snapshots from JD Power, Cox Automotive and Cars.com, whose measures and reporting periods are not interchangeable. It also does not specify the exact month for the used-EV total of more than 47,000 sales.
It remains unclear how much recent movement reflects changes in prices, vehicle supply, buyer preferences or gasoline costs. The report includes dealer feedback linking interest in Hyundai’s Ioniq 5 to higher gas prices, but that is not a measured nationwide effect. Nor do the figures show how future policy changes or automaker product plans will shape the market.
Sales Data and Model Plans
The next evidence will come from continued monthly and quarterly sales reports, which can show whether the gains persist beyond the initial adjustment after the credit expired. Dealer inventory and days-on-lot figures will help indicate whether supply and demand are moving closer together, though neither measure alone establishes the cause of a change.
Automakers’ coming product decisions will also affect the outlook: the report describes delayed or canceled models alongside new offerings from companies including Toyota and Rivian. For buyers, the developing used-EV market may bring more choice as recent leased vehicles reach secondhand lots. The available source material does not give a specific forecast or date for when the new-EV market might return to its earlier levels.
Key Questions
When did the federal EV tax credit end?
The $7,500 federal EV tax credit ended on Sept. 30, 2025, according to the source report.
Did EV sales keep falling after the credit ended?
They fell sharply at first: JD Power data cited in the report show EVs’ share of retail sales declining from more than 14% in September 2025 to 5% in November. The share later rose, including to more than 8% in May, though the market’s recovery has been uneven.
Which automakers are supporting the new-EV recovery?
The report identifies Tesla and Rivian as major contributors. Cox Automotive estimates cited by InsideEVs suggest U.S. EV sales would have fallen slightly from the second to the third quarter without Tesla.
Are used electric cars selling?
Yes. Cox Automotive reported more than 47,000 used EV sales in the latest month cited, up 21% year over year and representing the largest-ever share of the used-car market for EVs. The source does not identify that month or state the exact share.
Have EV sales returned to their previous levels?
The cited evidence does not show a full return to the earlier peak. EVs’ share of retail sales was reported at 7.9% in September, compared with more than 14% during the pre-expiration buying rush the previous September.
Source: insideevs.com
