WHAT’S NEXT WITH EVS?

September 30th has come and gone—and that means the sun has officially set on the federal EV tax credits.

It’s a day that’s been looming since the passage of the budget reconciliation bill (AKA the Big Ugly Bill) in July, and marks the first time in decades that the government won’t be offering some kind of subsidy for plug-in vehicles.

It’s a massive loss for the United States because it helps ensure China will increase its lead in a world that is rapidly transitioning to electrified transportation.  It’s incredibly short-sighted.

Most people love what EVs have to offer, but their high upfront cost has put a damper on sales. The federal tax credits played a crucial role in addressing this concern, making EVs more financially accessible to the average consumer while giving manufacturers more time to make EVs cost-competitive. With the credits gone, experts anticipate steep drops in new EV vehicle sales, U.S. auto manufacturers shifting their focus away from their EV lines, and a shrinking domestic market that all but guarantees U.S. irrelevance and Chinese leadership in a major new industry.

So what comes next?

It’s clear that the Trump administration’s hostility toward EVs isn’t going away any time soon. At the same time, there are many states, cities, and auto manufacturers that remain fully committed to the EV transition—and they’re doing everything they can to keep us moving forward.

Here are some of the positive developments we’re already seeing:

  • Used EVs have become the fastest-selling car segment in the United States. New EVs remain much more expensive than internal combustion engine vehicles, but used EV prices are relatively close to used gas car prices, while being much less expensive to operate over time. That’s why sales were up a whopping 34% in the first half of 2025—an indicator that demand remains high and EVs are the clear choice when the price difference is negligible!
  • Some automakers are stepping up. Hyundai just announced substantial price reductions on their 2025 and 2026 models, and Ford and General Motors are both leveraging their financing units to help consumers take advantage of the tax credit for at least a few more months. Additionally, these companies have made it clear that they’re committed to more than just short-term solutions. Earlier this year, Ford unveiled their plan to release a $30,000 fully electric truck in 2027—and despite the CEO’s recent actions, GM recently ate the cost of steep tariffs to import two years’ worth of batteries for its second-generation Chevy Bolt.
  • States aren’t giving up the fight. As of October 1st, 15 states are still offering their own tax credits, 13 have joined the U.S. Affordable Clean Cars Coalition, and the California Air Resources Board has developed a comprehensive playbook with policy recommendations for scaling up clean vehicle adoption at the state level. The Trump administration has also given up on its push to eliminate federal funding for EV charging, paving the way for states to access the money they were promised for charging network buildout.

The federal EV tax credits may be gone—but that doesn’t change the fact that they helped set an irreversible transition in motion. That was a huge victory for consumers and the planet. Now, it’s up to states, cities, and automakers to do what they can to keep up the momentum.

Join us as we remind our elected officials that there’s still plenty of progress to be made!