Overview
- U.S. EV sales fell 46% from Q3 to Q4 and 37% year over year after the $7,500 Inflation Reduction Act credit expired in September, dropping Q4 market share to 5.7%, according to Cox Automotive.
- Cox projects 2025 U.S. EV sales will be 2.1% below 2024, with market share easing to 7.8% after a Q3 peak of 10.3% on pre‑expiration buying.
- Globally, roughly one‑quarter of new cars sold in 2025 are electric, with industry forecasts pointing to about half of new‑car sales in the early 2030s and as many as 200 million EVs on the road by 2030.
- China leads in adoption and manufacturing with EVs at roughly 50% of domestic sales, a model lineup far broader than the U.S., and growing export shares across Europe, Southeast Asia, and Latin America.
- Affordability remains a U.S. barrier with only nine EV models under $40,000 and 60% priced above $65,000, though automakers have announced lower‑priced launches for 2026–27 as battery costs decline.