U.S. EV Sales Slump as Federal Tax Credits End

U.S. electric‑vehicle (EV) sales dropped about 20% in the second quarter, marking a third consecutive quarter of decline after the Biden administration eliminated the federal tax credit for eligible purchases. The downturn affected all major manufacturers: Tesla’s volume fell 13%, General Motors 31%, BMW 41%, Nissan 88% and Honda 58%. The average price of a new EV in the United States rose to $56,238, roughly ten percent above the overall new‑car average, dampening consumer demand.

In contrast, markets in Japan and the European Union saw strong growth, with EU EV sales up 40% and Japanese sales more than doubling year‑over‑year. Industry analysts note that without federal incentives, the U.S. EV market may struggle to meet climate targets, prompting some companies, such as Rivian, to launch new models in hopes of reviving interest.