Overview

• The federal incentives worth up to $7,500 for new EVs and $4,000 for used vehicles ended after Sept. 30, removing the point-of-sale discount that had lowered prices since 2024.
• A pre-deadline rush lifted July–September EV sales 21.1% year over year, with EVs at 11% of the U.S. market in August and forecasts near 12.2% for September.
• Automakers are deploying workarounds such as lease structures and finance maneuvers to preserve value for buyers despite the federal credit’s expiration.
• Tesla is offering a $6,500 manufacturer credit, Ford and GM finance units moved to lock in eligibility on dealer inventory before the deadline, and Hyundai is offering $7,500 on 2025 Ioniq models and up to $9,800 on 2026 models.
• Industry leaders signal a pivot toward hybrids and other partial electrification, with reports of battery makers facing U.S. surpluses and delaying factory plans.