U.S. electric vehicle (EV) sales are expected to capture a smaller share of the market in the near term following the expiration of federal tax credits, Ford Motor CEO Jim Farley said.
EV market share in the United States reached record levels in the third quarter, partly driven by buyers taking advantage of the tax credit before it expired at the end of September. Farley said he anticipates adoption to settle at around 5 percent of the overall market, down from the 10–12 percent recorded in September.
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“In the near term, I believe EV adoption will now only be about five percent of the U.S. market, but this is going to grow especially for affordable EV vehicles,” Farley told investors during Ford’s third-quarter earnings call. He added that the company is well-positioned with its Universal EV Platform, which supports digitally advanced, spacious vehicles starting at roughly $30,000.
Ford’s share of the U.S. EV market has declined sharply since 2022, falling from 28.4 percent in the second quarter of that year to 13.5 percent in the same period this year. The automaker currently offers three EV models in the U.S., all first-generation vehicles without near-term updates. Farley noted that Ford is focusing on low-cost products, including a mid-size EV pickup planned for production in 2027.
Former CEO Mark Fields also highlighted that the EV market is likely to experience more gradual growth moving forward, reflecting broader expectations across the industry for a slower adoption pace following the stimulus-driven surge.
Source: FordAuthority