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The federal $7,500 EV tax credit ended on September 30, 2025. A year later, market data cited by InsideEVs point to a partial recovery in new EV sales, with Tesla and Rivian accounting for much of the momentum, while used-EV sales have grown. The market’s direction remains uncertain as automakers adjust their product plans and buyers respond to prices and fuel costs.
One year after the federal $7,500 electric-vehicle tax credit ended on September 30, 2025, U.S. EV sales have recovered part of their post-incentive decline, but the rebound is uneven, according to data and industry interviews cited by InsideEVs. Tesla and Rivian have accounted for much of the new-EV momentum, while used-EV sales have reached a record share of the used-car market, the report says.
The end of the credit was followed by a sharp decline in EVs’ share of retail car sales after a rush to buy before the deadline. JD Power data cited by InsideEVs put that share above 14% in September 2025, then at 7.1% in October and 5% in November. The report says the share rose above 6% in December and topped 8% in May. JD Power’s September figure was 7.9%, a measure the report says had returned the market to roughly two years earlier.
Recovery has not been shared evenly across manufacturers. Cox Automotive estimates cited in the report show U.S. EV sales increased 6.1% from the second to the third quarter, reaching about 262,000 vehicles, the highest quarterly level since the credit ended. Cox estimates that without Tesla, the market would have contracted slightly over that period. Tesla’s own sales fell 19.7% year over year in the third quarter, but the overall market contracted by close to 40%, lifting Tesla’s share above half, according to the report.
The used market is another source of growth. Cox Automotive says Americans bought more than 47,000 used EVs in the most recently reported month, up 21% year over year and representing the largest-ever share of used-car sales for EVs. The report links demand to a larger supply of newer, longer-range models entering the secondhand market, including vehicles coming off leases.
A Recovery With Uneven Winners
The numbers suggest the end of the incentive did not erase demand for electric vehicles, but it changed which buyers and manufacturers are driving the market. For shoppers, the distinction between new and used is material: a growing inventory of relatively recent used EVs may offer a lower-cost route to electric driving, though prices, range, battery condition and local availability vary.
For automakers, the divergent results reflect different business choices and customer bases. InsideEVs reports that several traditional manufacturers have canceled or delayed roughly two dozen EV models since the policy shift, while EV-focused firms cannot switch their lineups to gasoline vehicles in the same way. That can limit choices for buyers and affect how quickly manufacturers can respond if demand strengthens. The reported figures describe a recovery, not a return to the growth trajectory that existed before incentives ended.
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The Market After September 2025
The federal purchase credit expired on September 30, 2025, according to the report, alongside changes to other policies supporting vehicle efficiency and EV adoption. Buyers’ purchases before the deadline contributed to a temporary sales surge, followed by a sharp drop in the following months. The comparison matters: the immediate fall reflected both the lost incentive and demand pulled forward by the deadline.
There are signs that supply and demand are moving closer together. Cars.com data cited by InsideEVs show average time to sell an EV fell each month from April through September, reaching 89.4 days in September, down from 115.6 days in March. That remained above the 80.5 days recorded during the prior year’s buying rush. Cars.com editor-in-chief Jenni Newman said the trend suggested the market was getting closer to a balance, though the figure alone does not establish that supply and demand are fully aligned.
““That, I think, is showing that we’re getting closer to the moment where the demand and the supply are in good balance.””
— Jenni Newman, Cars.com’s editor-in-chief, as quoted by InsideEVs
Demand Beyond the Incentive Shock
The figures do not establish how much of the new-EV recovery is durable or how much is tied to model launches, pricing, fuel costs or other short-term factors. The report notes that higher gasoline prices may have helped some dealers seek more inventory, but that observation is anecdotal; it does not show a broad, measured sales effect. Tesla also does not break out its U.S. regional sales, according to the report, limiting precision around its domestic results.
The used-EV total is reported for the most recent month cited, but the source excerpt does not specify the month or provide a full breakdown by vehicle age, price or model. Nor does it establish whether the stronger used market will persist as more vehicles enter the market. Future policy, automaker pricing and product plans could also change the outlook.
Signals to Watch in Sales Data
The next useful test will be whether new-EV sales and dealer turn rates continue to improve beyond the period covered in the report. Buyers and automakers will also be watching the release of new models, changes in gasoline prices, and whether manufacturers maintain or revise their planned EV lineups. Monthly data can show whether the rebound is broadening beyond a small group of companies.
For used vehicles, upcoming sales and inventory figures should clarify whether demand remains strong as more leased EVs reach the market. Until those data are available, the clearest conclusion is limited: the market has adapted to the loss of the credit, but the recovery is uneven, and its next phase is not yet established.
Key Questions
When did the federal EV tax credit end?
InsideEVs reports that the $7,500 federal EV tax credit ended on September 30, 2025.
Did new-EV sales recover after the credit ended?
They recovered part of the initial decline, according to the figures cited by InsideEVs. JD Power data showed EVs’ share of retail sales rising from 5% in November to above 8% in May, though the report describes the broader recovery as uneven.
Which companies drove much of the new-EV recovery?
The report identifies Tesla and Rivian as major contributors. Cox Automotive estimates cited in the article indicate the overall market would have slipped slightly from the second to the third quarter without Tesla.
Are used electric cars selling well?
Yes, according to Cox Automotive figures cited by InsideEVs: more than 47,000 used EVs sold in the most recently reported month, a 21% year-over-year increase. The source excerpt does not identify that month by name.
Is the EV market back to its previous growth path?
The available figures do not show that. Sales have rebounded from their post-credit low, but the recovery is uneven and the report says the market’s longer-term direction remains uncertain.
Source: insideevs.com
