Is the EV Boom Over? US Electric Car Sales

EV Sales Crash 2025: Electric Vehicles Hit Rock Bottom at Just 5.4% of US Car Sales in November After Tax Credits Vanish

December 18, 2025 – The U.S. electric vehicle (EV) market has hit a wall. Fresh data from Cox Automotive’s EV Market Monitor reveals that EVs accounted for only 5.4% of new vehicle sales in November – the lowest market share since April 2022 and a steep fall from October’s 5.8% and Q3 peaks above 11%.

With estimated sales of around 70,000 units, this marks a brutal ~41% year-over-year drop. The culprit? The federal $7,500 EV tax credit expired on September 30, sparking a Q3 buying frenzy followed by this predictable – and painful – slowdown.

Is this a temporary dip or a sign that unsubsidized EVs can’t compete? Let’s break down the numbers, winners, losers, and what lies ahead.

The Hard-Hitting Data: November’s EV Bloodbath

Key takeaways from Cox Automotive (released December 15, 2025):

• Market Share: 5.4% – multi-year low.
• Sales Volume: ~70,255 units (down sharply YoY and from October).
• Top Performers: Tesla (~39,800 units, gaining share to 56.7% as rivals bled more), Rivian (4,500), Ford (4,188), Chevrolet (3,112), Hyundai (2,853).
• Inventory Crisis: Days’ supply soared to 149 – highest since early 2024, signaling weak demand.
• Bright Spot: Year-to-date EV sales still 2.1% ahead of 2024, buoyed by the pre-expiration rush.

The broader new-vehicle market also cooled, with SAAR around 15.6 million units.

Why the Dramatic Drop? Tax Credits Gone, Reality Sets In

The Q3 record (438,000+ EVs sold) was fueled by buyers racing to grab the $7,500 incentive before it vanished. Now, without it:

• EVs feel pricier (average transaction ~$58,000+).
• Affordability hits harder amid high interest rates and economic uncertainty.
• Dealers flooded with stock, leading to bigger discounts but exposing soft underlying demand.

Experts like Cox Automotive’s Stephanie Valdez Streaty warn the downturn is deepening, with inventory surging.

Hybrids Surge While Pure EVs Struggle

As full EVs falter, hybrids are stealing the show:

• Hyundai posted record hybrid sales (+42% YoY).
• Toyota, Kia, and others report booming electrified gains (mostly hybrids/PHEVs).

Buyers want efficiency without charging hassles or premium prices – hybrids offer the perfect middle ground.

Global EV Boom Highlights US Isolation

While America stalls, the world charges ahead:

• November Global Sales: Nearly 2 million EVs (+ robust growth).
• YTD 2025: 18.5 million units (+21% YoY).
• Europe: +36% in November, driven by incentives in France, Italy, UK; YTD 3.8 million (+33%).
• China: 11.6 million YTD, dominating with affordable models and exports (BYD smashed records).

The US risks lagging in the global EV race without supportive policies.

2026 Outlook: More Pain, Then Potential Recovery?

Analysts predict:

• Continued weakness into early 2026 – low single-digit share possible.
• Automakers (Ford, GM, etc.) scaling back aggressive EV plans, pivoting to hybrids.
• Deals galore for buyers: High inventory means steep discounts.

Longer-term hope: Cheaper models arriving, charging networks expanding, and possible policy shifts could reignite growth.

As one analyst summed it up: The “training wheels are off” – true demand is being tested without subsidies.

Bottom Line for Buyers and Investors

November’s collapse is a wake-up call. For shoppers, it’s prime time for EV bargains. For the industry, it’s proof mass adoption needs more than incentives – it demands affordable, practical options.

The EV revolution isn’t dead, but in the US, it’s hitting a major speed bump.