According to reports from the first half of 2025, EV sales in the US dipped slightly compared to the previous year. In the second quarter alone, about 310,800 new EVs were sold—a 6.3% decline from Q2 2024. However, total sales for the first half of the year hit a record 607,000 units, representing a modest 1.5% increase year-over-year. This suggests that while growth has slowed, it hasn’t stopped.
Industry experts, like those at Cox Automotive, highlight that this dip signals a “more mature market” rather than a collapse. The market faces headwinds including the planned expiration of federal tax incentives by the end of 2025 and ongoing economic pressures such as rising interest rates and inflation affecting consumer spending power. Incentives—which once offered up to $7,500 per vehicle—are slated to end, removing a key driver that encouraged many early adopters to buy EVs.
Despite the challenges, there was an uptick in sales during Q2 compared to Q1 2025, likely driven by buyers rushing to take advantage of remaining incentives before they disappeared. Analysts expect a possible sales spike in Q3, followed by a significant slowdown in Q4 as the market adjusts to the new incentive-free reality.
The competitive landscape remains fierce among automakers. While Tesla’s market share has declined this year—with Tesla’s US sales falling over 12% in Q2—other manufacturers like General Motors are gaining ground. GM’s Cadillac, Chevrolet, and GMC brands reported strong EV growth, tripling their sales volume compared to the previous year and increasing their market share to nearly 13% of US EV sales.
But affordability continues to be a major barrier for many consumers. Electric vehicles generally carry a higher upfront cost than gas-powered cars, and issues like charging infrastructure, range anxiety, and a lack of used EVs accessible at lower price points limit wider adoption.
Interestingly, the US used EV market is heating up. Used EV sales hit record numbers in Q2 2025, surpassing 100,000 units sold, and show promising growth even as federal incentives for used EVs remain limited. This suggests a growing comfort among consumers considering EVs as mainstream choices, especially at lower price thresholds.
On the global front, while the US struggles with these market hurdles, other regions are surging ahead. China alone sold over 3 million EVs in the first half of 2025 and now accounts for nearly two-thirds of global EV sales. Europe trails behind China but maintains steady growth driven by strong policy support and infrastructure investments.
In summary, electric vehicles in the US are not dead—they are navigating a moment of transition amid changing policies, economic pressures, and evolving consumer preferences. The market is maturing from a rapid growth phase to one that demands innovation, affordability, and infrastructure development to sustain momentum.
The next few years will be critical as manufacturers adapt to new realities—developing more affordable models, expanding charging networks, and working with policymakers to create incentives that maintain growth. For consumers, EVs remain an exciting option, but widespread adoption depends on overcoming the hurdles that still temper mass market enthusiasm.
So, electric vehicles in the US may not be booming at the pace once hoped for, but they’re far from extinct. Instead, they are entering a new phase that will shape the future of transportation for decades to come.