America's EV Slowdown Is Here

Gizmodo

3 days ago

The era of seemingly unstoppable growth for electric vehicles in the United States has come to a screeching halt. New sales figures for the second quarter of 2025 reveal a market in reverse, with momentum waning as the industry confronts significant headwinds from high prices and persistent consumer anxiety.
According to a new report from Kelley Blue Book, the U.S. electric vehicle market, long seen as a bastion of growth, hit a significant speed bump, with sales dropping by more than 6% in a stark reversal of recent trends. This slowdown suggests the industry is facing mounting pressure from consumer concerns over affordability and charging infrastructure.
Total EV sales in the second quarter fell to 310,839 vehicles, a 6.3% decline from the 331,853 sold during the same period in 2024. The downturn marks a recent development, as year-to-date sales figures remain slightly positive. From the start of 2025 through the end of June, 607,082 EVs were sold, a modest 1.5% increase over the 597,834 sold by this time last year. This contrast indicates that while the year started on solid ground, the spring quarter saw a significant cooling of buyer enthusiasm.
This contraction challenges the long-held narrative of exponential growth and forces the auto industry to confront pressing questions. Are high sticker prices finally creating a ceiling for buyer demand? Has the slow buildout of reliable public charging networks begun to deter mainstream consumers? Or, after an initial wave of early adopters, is the market simply becoming saturated with high-end models while a true, affordable EV for the masses remains elusive?
The hurdles for the EV transition are significant and multifaceted. A primary barrier remains the price. As of early 2025, the average transaction price of a new electric vehicle was approximately $55,614, considerably higher than the $48,641 average for a new gas-powered car, according to Chase. Even with government incentives, this price gap keeps EVs out of reach for many middle-class Americans.
Public charging infrastructure also continues to lag behind what is needed for mass adoption. While a road trip in a Tesla may be straightforward thanks to its proprietary Supercharger network, drivers of other brands often find long-distance electric travel remains a logistical puzzle. The Biden administration had invested heavily in building out a national charger network, but the rollout has been slow and fragmented. This stands in contrast to policy proposals from the new Trump administration that sought to reduce government aid encouraging consumers to switch to electric vehicles. Until charging becomes as ubiquitous and reliable as stopping for gas, many consumers may continue to favor gas-powered cars or plug-in hybrids.
Digging into the report reveals a market in flux. While Tesla's sales declined 12.6%, the company remains the undisputed market leader. Tesla's market share grew to 46.2% in the second quarter, up from 44.7% in the same period last year.
Two General Motors brands, Chevrolet and Cadillac, stand out. Propelled by new models, Chevrolet is now the second largest seller of electric vehicles in the United States, capturing 9.2% of the market. On the other hand, Ford saw its market share decrease to 5.3%. The young disruptor Rivian also saw its share of the market increase to 3.4%.
Tesla's Model Y SUV remains the best-selling electric vehicle in the country, but its sales fell 15% to 86,120 units over the past three months. The Model 3, Tesla's entry-level sedan, bucked the trend and ranked second with 48,803 vehicles sold, an increase of 14.3%. In a sign of shifting consumer preference toward affordability, the Chevy Equinox secured the third-place spot with 17,420 units sold.
Overall, the U.S. EV market is maturing, and that means growing pains. These pains are likely to be severely exacerbated by a looming policy change: the scheduled end of the $7,500 federal tax credit for new EV purchases and the $4,000 credit for used EVs on September 30. For an industry already showing signs of a slowdown, the removal of its most significant purchase incentive represents a critical test of its resilience.