EV sales surge in the U.S. ahead of Sept. 30 tax credit deadline

Published: Tuesday, September 30, 2025 at 9:00 am

EV Sales Surge Ahead of Tax Credit Deadline, But a "Hangover" Looms

Recent data indicates a significant surge in electric vehicle (EV) sales in the United States, driven by the impending expiration of federal tax credits. The credits, offering up to $7,500 for new EVs and $4,000 for used ones, were set to end on September 30th. This deadline spurred a rush of consumers eager to secure the financial incentive, leading to a spike in EV purchases.

Industry experts have observed a dramatic increase in sales. TrueCar reported an "explosion" in EV sales in the weeks leading up to the deadline. Cox Automotive forecasts a 21.1% increase in EV sales for the third quarter compared to the same period last year, and a 30% increase from this spring. J.D. Power data shows EVs accounting for over 11% of the U.S. market in August, a level previously reached only once before.

The demand extended to the used EV market, with vehicles under $25,000, potentially eligible for the used vehicle tax credit, experiencing rapid sales. This surge in EV purchases has also boosted the overall automotive market, with Edmunds predicting the strongest third-quarter new vehicle sales since before the COVID-19 pandemic.

However, analysts anticipate a potential "EV hangover" in the coming months. The accelerated purchases driven by the tax credit deadline may lead to a slowdown in sales as the initial wave of buyers subsides. The end of the tax credits could reduce EV sales by 16 to 38% compared to how sales might have grown.

Despite the expected temporary slowdown, the long-term outlook for EVs remains positive. Automakers are continuing to invest in EV technology, and consumer interest in the vehicles remains strong. Over half of new-vehicle shoppers express interest in purchasing an EV in the next year. The future of EV sales will depend on whether automakers can maintain competitive pricing without the tax credits.

BNN's Perspective: The recent surge in EV sales highlights the impact of government incentives on consumer behavior. While the expiration of tax credits may cause a short-term dip, the underlying demand for EVs, coupled with ongoing technological advancements, suggests a continued, albeit potentially slower, growth trajectory for the EV market.

Keywords: EV sales, electric vehicles, tax credits, deadline, sales surge, auto market, consumer demand, used EVs, automakers, market trends, automotive industry, federal tax credits, EV market, sales growth, consumer behavior

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