"The electric vehicle market keeps getting better every year. More choices, a steadily expanding charging network and real improvements in the underlying technology helped make last year the second-best on record for EV sales in the U.S., critics be damned. Americans bought 1.27 million battery-powered vehicles in 2025, just 2% shy of the 2024 record of 1.3 million, according to Cox Automotive estimates."
"That number, however, masks a sharp shift that happened late last year. After the $7,500 federal tax credit expired at the end of Q3, sales fell off a cliff in Q4, dropping to just 234,000 units. That's a 46% decline from Q3 and down 36% year-over-year. Most EVs posted negative growth in that period. Still, a small but telling group of about a dozen vehicles bucked the trend."
"Several models from General Motors, Porsche, Tesla, Lucid and Mercedes managed to grow in the final quarter without the help of the now-dead $7,500 federal tax credit. They also did so amid relaxed Corporate Average Fuel Economy (CAFE) rules, which no longer penalize automakers for missing efficiency targets. To lay out a handful of examples on the table (The full list is below), sales of the Porsche Taycan grew 23.6% year-over-year to 1,672 units in Q4."
U.S. buyers purchased 1.27 million battery-powered vehicles in 2025, just 2% below the 2024 record of 1.3 million. Sales collapsed in Q4 to 234,000 units after the $7,500 federal tax credit expired, a 46% decline from Q3 and 36% year-over-year. Most EV models posted negative growth in Q4. Roughly a dozen models, largely premium vehicles, grew in the final quarter without the tax credit and despite relaxed CAFE rules. Examples include the Porsche Taycan, Tesla Model Y and Cadillac Escalade IQ, which showed notable year-over-year gains.
Read at insideevs.com
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