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The federal $7,500 EV tax credit ended on Sept. 30, 2025, and U.S. electric-car sales fell sharply before showing a gradual recovery. The rebound is uneven: Tesla and Rivian are helping drive new-EV sales, while used EV sales have reached a record share of the used-car market. The figures describe a changing market, not a return to the incentive-era sales peak.
U.S. electric-vehicle sales have begun to recover a year after the $7,500 federal EV tax credit ended, but the rebound is uneven: Tesla and Rivian account for much of the momentum in new vehicles, while used EV sales have reached a record share of that market, according to figures and interviews reported by InsideEVs. The change matters to buyers and automakers because it shows how demand is evolving without the former incentive, although the available data do not establish that the market has returned to its previous trajectory.
The credit expired on Sept. 30, 2025. JD Power data cited by InsideEVs show battery-electric vehicles made up more than 14% of retail car sales in September 2025, before their share fell to 7.1% in October and 5% in November. The report says the drop reflected both the sudden loss of the incentive and buyers bringing purchases forward before it ended. The share later rose above 6% in December and above 8% in May, according to JD Power. Its figures put September’s share at 7.9%, illustrating that estimates or definitions may differ across reporting periods.
Recovery has not been shared evenly among manufacturers. Cox Automotive estimates that U.S. EV sales rose 6.1% between the second and third quarters to about 262,000 vehicles, the highest quarterly level since the credit ended. The firm’s estimates suggest sales would have edged down without Tesla. Cox also estimated Tesla sales fell 19.7% year over year in the third quarter, compared with a decline of close to 40% for the market overall. Tesla does not report regional sales separately, so the market-share assessment relies on estimates.
Retail conditions have also shifted. Cars.com data cited in the report show the average EV took 89.4 days to sell in September, down from 115.6 days in March and near the 80.5 days recorded during the prior year’s buying surge. The used market is a separate bright spot: Cox Automotive says more than 47,000 used EVs sold in the latest month covered by the report, up 21% year over year and representing the largest-ever share of the used-car market. The report links that demand to a wider supply of newer, longer-range vehicles, including former lease cars.
A Recovery With Uneven Winners
The market’s direction matters beyond quarterly sales totals. Buyers are weighing vehicle prices and operating costs without the tax credit that had lowered the purchase cost of eligible new vehicles. Automakers, meanwhile, must decide how much to invest in EV models as demand, incentives and regulations change. The reported rebound suggests that removing the credit did not stop sales, but the concentration of growth among a small number of companies points to a less uniform market than headline totals alone might suggest.
Used-EV activity offers another measure of consumer interest. A larger pool of secondhand models can give shoppers more choices at lower prices than new vehicles, though the figures provided do not show how much sales are driven by price, fuel costs, model availability or other factors. The report also notes that higher gasoline prices may have helped interest at the margin; that is an observation from industry interviews, not proof of a broad causal effect.
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The Credit’s Expiration and Aftermath
The federal purchase credit ended amid other policy changes affecting the auto industry. The InsideEVs report says Congress and the Trump administration also rolled back fuel-economy regulations and other policies that had supported EV adoption. Automakers responded in different ways: some traditional manufacturers delayed or canceled electric models, while EV-only companies could not shift their lineups toward gasoline vehicles in the same way.
The initial sales fall followed a rush to buy before the deadline. The report cites JD Power’s retail-share figures to show the sharp reversal from September to November 2025, followed by a gradual rise. It also reports that Toyota’s EV sales grew as it introduced new models, while Tesla and Rivian were among the firms contributing to the recovery. These examples point to differences in product offerings and business strategies; they do not establish a single explanation for each company’s results.
““All of a sudden, you either add the incentive, or you lose sales, or you do something in between.””
— José Muñoz, Hyundai chief executive, as quoted by InsideEVs
What the Sales Figures Cannot Show
The data do not establish whether the recovery will continue, how quickly it might progress, or whether it will reach the sales levels seen before the credit expired. The cited figures also come from different organizations and time windows, and the report gives no complete, consistent series for every measure. Tesla’s regional sales are not disclosed by the company, so estimates of its contribution and market share carry that limitation.
It is also unclear how much of the reported improvement reflects lasting consumer demand versus model launches, changing prices, dealer inventory or temporary factors such as fuel costs. The source report includes anecdotes from dealers and executives, but those accounts should not be treated as nationwide sales evidence. The supplied material does not provide the remaining detail of its fourth takeaway, so no additional conclusion beyond the reported new- and used-market trends can be confirmed here.
Signals to Watch in Upcoming Data
The next useful test will be whether quarterly sales and retail-market share continue to improve across several manufacturers, rather than relying on gains from a few companies. Dealer inventory and time-to-sale figures can help show whether supply and demand are moving closer together, while used-car sales will indicate whether secondhand interest holds as more recent models enter the market.
Buyers should check current eligibility and pricing directly with manufacturers and dealers; the federal credit discussed in this report has ended. The source material does not identify a scheduled policy change or a confirmed sales milestone ahead, so the market’s next direction remains open.
Key Questions
When did the $7,500 federal EV tax credit end?
The report says the credit ended on Sept. 30, 2025. It does not provide guidance on eligibility for individual purchases or any separate state or local incentives.
Did EV sales keep falling after the credit expired?
They fell sharply at first. JD Power figures cited by InsideEVs show EVs’ share of retail sales dropping from more than 14% in September 2025 to 5% in November, then rising above 6% in December and above 8% in May. These figures describe retail share, not a direct count of all vehicles sold.
Which companies are driving the new-EV recovery?
The report identifies Tesla and Rivian as major contributors. Cox Automotive estimates suggest the market would have declined slightly between the second and third quarters without Tesla, but the company does not break out U.S. regional sales.
Are used EVs selling well?
According to Cox Automotive figures in the report, more than 47,000 used EVs sold in the latest month covered, a 21% year-over-year increase and the largest-ever share of the used-car market. The source does not specify in the supplied material which calendar month that figure represents.
Source: insideevs.com
