EV Sales Are (Predictably) Plummeting Without The Tax Credit

      Acura

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      With the first month of sales reports emerging following the tax credit changes, U.S. electric vehicle (EV) sales have suffered greatly. The highly publicized cessation of EV subsidies had the exact impact that analysts predicted, prompting sales to surge in the final months they were available (and likely leaving demand depressed for quite some time). Even where brands introduced their own incentives, sales have drastically decreased, and as automakers shift their focus from electric models to internal combustion engine (ICE) vehicles in the near future, we anticipate the segment will remain relatively slow.

      Keep in mind that not all automakers provide monthly sales figures anymore, so a clearer industry-wide overview won't emerge until January (after the Q4 and full-year sales have been reported). Here’s a preliminary overview:

      Hyundai – Ioniq 5 sales saw a steep decline, plummeting more than 60% compared to a year earlier. However, total Ioniq 5 sales are still nearly 25% higher for 2025, so it’s not entirely negative. Ioniq 6 sales dropped 52% in October and are down 4% for the year; even worse, they were already only selling in triple-digit monthly amounts. Hyundai has sold fewer than 10,000 of these sedans this year. Hyundai sold nearly as many Ioniq 9s as it did Ioniq 6s, but that’s not saying much…

      Kia – EV6 sales also fell by two-thirds compared to last October, and the three-row EV9 saw a similar drop. EV6 sales have decreased by a third overall in 2025, contrasting with the Hyundai Ioniq 5. Kia does not separate Niro sales by powertrain, but the smaller crossover experienced a 75% increase last month despite an ongoing full-year sales deficit.

      Honda – It’s not surprising that the Prologue suffered in October, dropping 80% to just over 800 units sold. However, this was still an improvement over the now-defunct Acura ZDX, which saw only 25 sales last month (down from 1,200 a year earlier).

      Subaru – You might be surprised to know that Subaru was on track to match its 2024 total of just over 10,000 Solterras sold in 2025, but that momentum halted abruptly in October. Subaru managed to sell just 13 EVs last month.

      In summary: It’s a tough situation. While it likely won’t remain this bleak in the long run, we’re not anticipating any major shifts in the segment anytime soon. Much of the pent-up demand was fulfilled when EVs were discounted while the credit was active, so even if prices haven’t changed significantly, it's reasonable to assume that automakers were spending more to sell vehicles while the government was still covering part of the discount.

      The end result may not have differed much for the customer, but a considerable amount of potential profit vanished almost overnight, and automakers prefer to concentrate on selling models that won’t incur losses.

      We’ll remain vigilant for any other significant updates regarding EV sales; until then, if you’re looking for leftover inventory, your preferred brand might be willing to negotiate just to clear it from the lot. It’s worth a shot.

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