U.S. EV Sales Dip in Q2 as Incentive Phase-Out Looms and Market Matures
New electric vehicle (EV) sales in the U.S. fell 6.3% year over year in Q2 2025, totaling 310,839 units, despite rising 4.9% from Q1 and setting a record for first-half sales at over 607,000 units.
The decline reflects a maturing market, rising economic pressures, and anticipation of the upcoming expiration of federal incentives in October.
Incentives reached record levels, averaging nearly $8,500 per vehicle in June, yet could not offset slowing demand.
While Tesla's sales and market share declined—dropping to 44.7%—General Motors surged, more than doubling its EV sales from the prior year and becoming the No. 2 EV brand behind Tesla.
Used EV sales surpassed 100,000 units in Q2, hitting a new record as that market segment gains momentum.
Cox Automotive revised its 2025 forecast, lowering expected EV market share from 10% to 8.5%, projecting flat overall sales volume for the year, even as global EV growth—particularly in China—continues to accelerate.
EV Market Holds Steady Amid Shifting Dynamics and Waning Incentives
The EV market in June showed steady momentum despite shifting dynamics, with long-term trends remaining favorable. New EV sales dipped slightly to 103,945 units (down 1.4% from May), yet market share climbed to 8%, buoyed by gains from Chevrolet, Kia, and Tesla.
Auto Industry Avoids Shutdown as Tariff Exemptions Ease Pressure, but Uncertainty Looms
Three months after the U.S. enacted 25% tariffs on global vehicle imports, the North American auto industry continues operating with only a slight production slowdown, avoiding the predicted shutdowns thanks to key exemptions and limited implementation of the tariffs.