Marketplace Tech A whiplash year for electric vehicles
Dec 31, 2025
Henry Epp, a knowledgeable business and technology reporter for Marketplace, discusses the turbulent landscape of electric vehicle sales as federal tax incentives come to an end. He explains how the recent rush by consumers to buy EVs resulted in record sales. Epp highlights the price disparity between new and used EVs, and notes that automakers like Ford and GM are recalibrating their strategies. He also contrasts the global adoption rates in China and Europe with the U.S. outlook, predicting a dip in sales for 2026 unless affordability and infrastructure improve.
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Federal Tax Credits Disappeared
- The One Big Beautiful Bill Act removed federal EV tax credits that had supported buyers for years.
- That policy change created a sudden market shift and uncertainty for future sales.
Sales Dropped Sharply Post-Expiration
- EV sales plunged after the tax credits expired, with October dropping nearly 50% from September.
- Cox Automotive data shows the market fell to a lower sustained level in November.
Buyers Pulled Purchases Forward
- People pulled purchases forward to get credits before they expired, creating a temporary sales spike.
- That pull-forward reduced demand in the months following expiration.