US EV Sales Fall 20% in Q2 as $7,500 Tax Credit Expiration Cuts Demand
Updated
Updated · CNN · Jul 19
US EV Sales Fall 20% in Q2 as $7,500 Tax Credit Expiration Cuts Demand
3 articles · Updated · CNN · Jul 19
Summary
Cox Automotive said US new EV sales fell 20% in the second quarter from a year earlier, reflecting weaker demand after federal incentives were rolled back.
The sharp drop followed last October’s end of the $7,500 buyer tax credit and the removal of emissions-rule penalties, after a pre-deadline buying rush pulled demand forward.
Q2 still improved 15% from the first quarter, and used-EV sales hit a record, suggesting a smaller but clearer base of organic demand.
Automakers have taken tens of billions of dollars in charges to scale back US EV plans, yet they are still expected to keep investing as global EV sales rise and Chinese rivals expand.
Outside the US, battery EV sales reached about 14 million last year, while Chinese models priced below $25,000 underscore the cost gap with the average new US EV at $56,377.