One year after the end of the EV tax credit, is the future still electric?
Following the expiration of federal EV tax credits in late 2025, electric vehicle sales experienced a significant decline before stabilizing at a lower market share. Industry experts note that while the explosive growth has slowed, the market has not collapsed.
Why it matters
It illustrates the impact of government subsidies on consumer behavior and the long-term viability of the electric vehicle transition.
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One year ago today, the auto industry bid farewell to a hefty federal tax credit that helped bring down the cost of electric vehicles. Congress had voted to kill it as part of 2025's One Big Beautiful Bill Act — and car buyers rushed to take advantage of the credit before it ended on September 30, 2025.
Ask around, and you get two answers. One is that EV sales are down, according to data from car analytics companies like Cox Automotive and Edmunds. No one is the least bit surprised.
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