"Automakers experienced a surge in demand during the third quarter as buyers accelerated purchases to qualify for the federal $7,500 tax credit before its expiration on Sept. 30. This pull-forward effect boosted EV sales temporarily, creating record quarterly volumes for many manufacturers. However, October and November data show a sharp decline, with U.S. EV market share dropping from over 11% in September to around 6% afterward ."
"Tesla ( NASDAQ:TSLA ) followed a similar pattern. The company reported declining deliveries in the first half of 2025, reflecting broader demand challenges and increased competition. Third-quarter 2025 deliveries reached a quarterly record of approximately 497,000 vehicles, driven largely by buyers rushing to secure the tax credit. Analysts attribute much of this volume to the incentive deadline. Now, with the credit gone, Tesla may have just sent a warning to investors of worse things to come."
Buyer rushes to qualify for the $7,500 federal clean vehicle tax credit before its Sept. 30 deadline produced a Q3 EV sales surge and record quarterly volumes across automakers. Cox Automotive data show national Q3 EV sales exceeded 400,000 units. After the credit expired, October and November sales plunged, with U.S. EV market share falling from over 11% in September to about 6%. Industry-wide fourth-quarter sales are projected to drop substantially from third-quarter peaks, risking the first annual decline in EV adoption in years. Tesla recorded roughly 497,000 Q3 deliveries but reported earlier 2025 delivery weakness and faces softer demand without the credit.
Read at 24/7 Wall St.
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