The U.S. auto industry is approaching an inflection point. The Trump administration has killed the $7,500 federal clean vehicle credit, which had unlocked the rapid growth of electric vehicle sales nationwide over the past few years.
With the Sept. 30 end date in mind, buyers rushed to claim the credit in its final days, helping automakers sell a record 410,000 EVs in the third quarter, which accounted for 11% of overall sales, according to Cox Automotive. Now EVs will have to sell without the credit, and we’re about to find out what organic growth looks like.
However, a small number of U.S. states will continue to offer their own regional tax credits, rebates, and incentives, allowing their residents to continue offsetting the high cost of EVs compared to gasoline vehicles.
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