The federal tax credit of up to $7,500 for new electric vehicles ended a year ago. The IRS says it is not available for vehicles acquired after Sept. 30, 2025. Third-quarter data released over the past two weeks show what the market looks like without it: smaller, steadier and cheaper.

Cox Automotive, in its Sept. 24 forecast update, projected about 239,000 new EV sales in the third quarter, down roughly 45% from about 437,000 a year earlier, when buyers rushed to beat the deadline and EVs took a 10.6% share of the market. Measured against this year, though, the market has been stable: Cox counted about 216,000 new EV sales in the first quarter and 247,000 in the second, with EVs holding close to 6% of new-vehicle sales throughout 2026.

Automakers feel the comparison

The year-over-year drops at individual brands were steep. Chevrolet sold 1,905 Equinox EVs in the third quarter, down 92.4%, and Ford's EV sales fell about 80%, including a 97.1% drop for the discontinued F-150 Lightning, according to CNBC. Tesla, which does not break out U.S. figures in its delivery report, said it delivered 486,532 vehicles worldwide.

Some automakers are trimming plans. GM is on course to build about 35,000 Chevrolet Bolts at its Fairfax, Kansas, plant before production ends in the first quarter of 2027, versus an original plan of 150,000, Reuters reported, citing United Auto Workers local president Dontay Wilson. GM declined to discuss volumes, saying it continuously evaluates "market dynamics and customer demand."

Better deals for EV shoppers

Buyers who still want an EV are finding lower prices. Kelley Blue Book says the average new EV sold for $54,813 in August, down 2.7% from a year earlier, and the premium over the average gas-powered vehicle shrank to 9.4% from more than 16%. EV incentives averaged 12% of the transaction price, nearly double the industry's 6.5%. Inventory has also normalized: Cox says new-EV days' supply fell from about 180 days early in the year to about 78 days at the end of August, in line with gas models.

Some automakers are adding their own sweeteners. Ford extended its Power Promise offer through the fourth quarter, giving buyers or lessees of a new 2026 Mustang Mach-E a choice of a complimentary home charging station with standard installation or $1,500 in bonus cash. Lower-priced models are arriving, too, including the 2026 Nissan LEAF, priced from $29,990.

Used EVs are the growth story

The used market is moving the opposite direction. Cox forecasts nearly 127,000 used EV sales in the third quarter, a record and up 13.3% from a year earlier. About 55,000 used EVs were listed for sale at the end of August, up roughly 30% in a year, as more EVs come off lease, according to Cox. Prices are firm: used EV listings averaged $37,441 in August, up 8.2% year over year.

Leasing has cooled, too. Cox says lease activity remains under pressure from the loss of the federal credit and has lowered its 2026 lease-penetration forecast to 23%. Charging access keeps improving, with Cox counting about 74,000 public fast chargers, up 27% from a year ago.