Sept. 22, 2026, 12:26 p.m. ET
- The federal authorities’s $7,500 EV tax credit score was eradicated on September 30, 2025.
- U.S. EV gross sales had been down almost 24% within the first half of 2026 in comparison with the identical interval in 2025.
- A number of automakers have since scaled again EV manufacturing plans in favor of hybrid fashions.
At the moment final yr, electrical automobile consumers in the US had been speeding to reap the benefits of the ultimate weeks of the federal authorities’s in style $7,500 tax credit score for plug-in fashions that was set to run out on the finish of September 2025.
That tax credit score, which was first adopted throughout former President George W. Bush’s administration in 2008 to assist spur EV adoption, was eradicated on Sept. 30, 2025, by a regulation that was handed by Republicans in Congress and signed by President Donald Trump.
EV gross sales have been intently watched since then, as each supporters and detractors sought to know how a lot demand for plug-in automobiles there can be with none authorities assist. In current months, in a bid to switch a few of the misplaced federal assist, state leaders in California stepped in to supply $3,750 in on the spot EV rebates to first time consumers of their state, which accounts for a few quarter of the nation’s EV market.
In accordance with Cox Automotive, U.S. EV gross sales had been down almost 24% within the first half of 2026, which is the latest information out there, in comparison with the primary half of 2025, when the $7,500 federal tax credit score was nonetheless out there. However the group mentioned EV gross sales within the second quarter of 2026 had been up greater than 14% over the primary quarter of the yr as rising fuel costs pushed consumers towards extra fuel-efficient fashions.
With that in thoughts, the USA TODAY Vehicles Workforce took a have a look at the place the U.S. EV market stands one yr after Trump killed the federal tax credit and what consumers can count on transferring ahead.
What occurred after the federal EV tax credit score went away?
A number of of the preferred electrical automobile fashions skilled steep gross sales drops within the fourth quarter of 2025, after setting information within the third quarter as automobile consumers rushed to reap the benefits of the $7,500 federal tax credit score earlier than it expired on the finish of September 2025.
This is how a few of the prime promoting U.S. EVs fared within the third quarter of 2025 in comparison with the fourth quarter of that yr, which was the primary since Trump pulled the plug on the federal tax credit score:
- Tesla Mannequin 3 and Mannequin Y | Q3 2025: 481,166 | This autumn 2025: 406,585
- Ford Mustang Mach-E | Q3 2025: 20,177 | This autumn 2025: 9,658
- Hyundai Ioniq 5 | Q3 2025: 8,408 | This autumn 2025: 2,279
- Honda Prologue | Q3 2025: 20,236 | This autumn 2025: 2,641
- Volkwagen ID.4 | Q3 2025: 4,518 | This autumn 2025: 248
Because the auto trade moved ahead into 2026, a number of automakers responded to Trump’s resolution to eradicate the U.S. EV tax credit score by asserting plans to drag the plug on low-selling electrical fashions.
Ford introduced plans to transition its F-150 Lightning pickup from a completely electrical automobile to a hybrid automobile sort generally known as an Prolonged Vary Electrical Car, or EREV.
In the meantime, Honda axed three of the three electrical fashions that it deliberate to construct and promote in the US. The Japanese automaker introduced in a March 12 assertion that it ended its plans to supply the electrical Honda 0 SUV, Honda 0 Saloon and Acura RS.
Lamborghini additionally deserted plans to develop totally electrical automobiles by the tip of the last decade in favor of constructing extra hybrids. The Italian automaker, a subsidiary of Volkswagen, confirmed to USA TODAY that they don’t seem to be following the plan to construct battery electrical automobiles by 2030 due to weakening demand in the US.
Additionally, Tesla is planning to finish manufacturing of its Mannequin S luxurious electrical sedan and Mannequin X luxurious electrical SUV within the spring in favor of constructing robots, firm CEO Elon Musk instructed traders on Tesla’s January earnings name.
The place does the US EV trade stand now?
Early indicators pointed to continued will increase in EV curiosity as summer season turns the autumn. Cox mentioned carmakers bought an estimated 78,895 electrical automobiles in August, which the group mentioned was up 2.5% from July however, as anticipated, was down 46.9% from August 2025. Against this, hybrid gross sales had been forecasted to extend by roughly 9% within the first half of 2026.
“August introduced additional proof of a steadily maturing electrical automobile (EV) market,” Stephanie Valdez Streaty, Cox Automotive’s director of Business Insights, mentioned.
“New and used EV gross sales elevated from July, stock ranges moved nearer to ICE+ autos and rising off-lease returns continued to increase used EV availability,” she continued. “On the identical time, lower-priced fashions gained share within the new market, serving to slim the worth hole between EVs and ICE+ autos.”
California began its “MyFirstEV” rebate program in August, and 13 main automakers confirmed plans to take part in California’s new $3,500 on the spot rebate program for brand spanking new EV consumers within the state. California accounted for almost 20% of all U.S. EV gross sales within the first half of 2026, in response to the Alliance for Automotive Innovation, which lobbies in Washington for many main carmakers.
New polling from the Zero Emission Transportation Affiliation, which lobbies for EV-friendly insurance policies in Washington, reveals willingness to contemplate EVs could also be extra intently tied to age than partisan affiliation, which was the idea within the early days of the second Trump administration.
ZETA’s ballot confirmed 75% of People below 35 say they’re prone to buy or lease an EV inside 5 years, in comparison with simply 23% of adults over 65 who mentioned they’d think about shopping for a plug-in mannequin quickly. By comparability, ZETA mentioned 57% of Democrats and 45% of Republicans. The group mentioned the 52% unfold on the age comparability dwarfs the 12% unfold on the partisanship query, displaying age is a greater predictor of openness to EV adoption now than politics.
“What this information reveals us is that EVs are the automobiles of right this moment and of the long run,” Corey Cantor, Analysis Director at ZETA mentioned in an announcement. “Even when they don’t personal one now, many individuals see themselves driving EVs inside the subsequent 5 years. Customers need trade and coverage decisions that can make that possession simpler to realize, not tougher.”
Keith Laing is an automotive reporter on the Nationwide Trending Desk at USA TODAY. Contact Keith at klaing@usatodayco.com.
