Dan J. Harkey

Master Educator | Business & Finance Consultant | Mentor

The U.S. Electric Vehicle (EV) Market is hitting a Rough Patch, and the Reasons are Clear:

The expiration of federal tax credits, high upfront costs, and persistent infrastructure gaps have triggered a sharp slowdown in demand. The Impact of these factors is not to be underestimated, as they have significantly altered the market dynamics. Social engineering only works when it continues to manipulate the public into thinking they are gaining benefits and preferential treatment. Once reality sets in that the benefits were only temporary, then the business adjusts back to market-driven economics.

by Dan J. Harkey

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What’s Happening Now

  • Federal incentives ended on 30 September 2025, under the “One Big Beautiful Bill Act,” a comprehensive legislation that aimed to boost the EV market by providing up to $7,500 in purchase credits and $4,000 for used EVs.  These credits had been critical in narrowing the price gap between EVs (average $57,000) and gas cars (average $48,000).   
  • Automakers front-loaded sales before the deadline, creating a boom-bust cycle: September saw record EV sales, but analysts expect a steep drop through Q4 and into 2026.  The decisions and actions of automakers have a significant Impact on the market, and their strategies are crucial in shaping the future of the EV industry.  Market share could fall from 10% to around 8% next year.
  • Inventory glut: Ford and GM have thousands of EVs sitting on lots.  Both tried to extend tax-credit benefits through leasing workarounds, but scrapped those plans after political backlash.  Now they’re offering deep discounts and 0% financing to move stock. 
  • Production pullbacks: GM took a $1.6 billion hit to scale back EV capacity and delay the introduction of new models.  Ford postponed its next-gen EV truck and van programs.  Stellantis canceled its full-size electric pickup and shifted focus to hybrids.   

Consumer Sentiment

  • Interest is sliding fast.  AAA’s 2025 survey shows only 16% of Americans are likely to buy an EV, the lowest since 2019.  The sentiment of consumers plays a pivotal role in the market, and their concerns, including battery repair costs (62%), high purchase prices (59%), a lack of charging stations (56%), and range anxiety (55%), are shaping the current state of the EV industry. 
  • Gallup reports just 8% are seriously considering an EV, down from 12% in 2023.  Hybrids are gaining favor as a “middle ground.”
  • Political polarization plays a role: Pew finds only 18% of Republicans would consider an EV versus 48% of Democrats. 

Why the Glut?

  • Automakers ramped up production, expecting strong growth under Biden-era policies.  When incentives vanished and emissions rules were relaxed, those forecasts collapsed.
  • Charging infrastructure remains patchy and unreliable—Harvard research shows U.S. chargers are only 78% reliable, fueling “charge anxiety.”
  • EVs still cost $9,000 more than gas cars on average, even as battery prices fall toward $100/kWh.

Global Contrast

  • China: EV sales surged to 9 million YTD, with BYD offering models under $10,000 and five-minute charging tech.  Exports doubled in September. 
  • Europe: Incentives and strict emissions rules keep demand strong; EV share could surpass 50% by 2032. 
  • U.S.: Adoption now projected to hit 50% by 2039—five years later than previous forecasts. 

Bottom Line

The U.S. EV market is entering a multi-year correction:

  • Expect discount wars and more hybrid launches.
  • The used EV market is expected to grow as lease returns flood the inventory.
  • The long-term outlook still points to electrification, but without policy support, the transition will be slower and more complicated.