- EV sales in the U.S. took a big hit last month, after the $7,500 federal tax credit was repealed.
- Dramatic as it may be, experts say the drop is only temporary, as more people are interested in new EVs, even without the tax credit.
- According to J.D. Power, the number of people who are considering a new EV is the highest since January.
EVs are far from done, despite the dramatic decrease in sales last month, the first full month after the $7,500 federal tax credit was repealed. Compared to September, EV sales plummeted by 53%, slashing the market share in half.
But that’s just part of the story, as data analytics, software, and consumer intelligence company J.D. Power recently discovered. For starters, last month’s steep sales dip can be partly attributed to consumers rushing to get the tax credit in September, which ballooned the numbers. So, naturally, fewer people bought new EVs in the following month.
Photo by: Suvrat Kothari
Then–and this is important–consumer interest is growing, not faltering, even without the $7,500 incentive on the table. Per J.D. Power, more than half of new vehicle shoppers (59.7%) say they are “very likely” (24.2%) or “somewhat likely” (35.5%) to consider buying or leasing an EV in the next 12 months. The number of people who are actively looking for a new car and are “very likely” to consider an EV is up 2.6 percentage points from September and is now at its highest level since January.
Current EV owners also need to be thrown into the mix, because most of them–a whopping 94%–say they will buy another EV when the time comes for a new car. Among them, 79% say they “definitely will” buy or lease a new EV, while 15% say they “probably will.”
The explanation for this continued interest is customer satisfaction. Among current EV owners, the number one reason for buying an electric car was the expected lower running costs (57%), followed by the tax credits and incentives (51%), driving performance (48%), purchase price or lease offer (47%), and design (35%).
As J.D. Power notes, the end of the federal tax credit will certainly affect the value equation, but EVs have consistently met or exceeded owners’ expectations on running costs.
This might not mean much today, but it will mean a lot next year, when no fewer than 243,000 franchise EV leases will come to an end. Seeing how 94% of current owners say they won’t go back to gas, many of them will likely buy or lease a new EV, putting them back on the market. For reference, 62% of people who returned an EV at the end of the lease in 2025 chose to buy or lease another one, according to the data intelligence company.
It all comes down to cost. While many EVs are more expensive to buy than their combustion-powered counterparts, they are more affordable to own. Per J.D. Power, 60% of current EV owners say their vehicles are much less expensive to own and operate than gasoline-powered cars, and another 26% say they are slightly less expensive to own. At the same time, just 7% of EV owners say their cars are more expensive to own than gas cars.
