The U.S. electric vehicle (EV) market has experienced a steep sales decline following the expiration of the federal $7,500 EV tax credit, but consumer enthusiasm for electric cars remains strong, according to the latest resources for November 2025.
October marked the first full month without the federal incentive, and the effect was immediate—EV sales fell by 53%, dropping from 12.9% of total new-vehicle sales in September to just 6% in October. The report attributed part of this decline to an “artificial sales spike” in September, as many buyers rushed to complete purchases before the credit expired. Analysts described the current downturn as a “rebound effect” rather than a long-term collapse in demand.
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Still, J.D. Power expects the loss of the tax credit to weigh on sales volumes in the coming months. “The bottom will not fall out of the EV market,” the report said, citing strong brand loyalty among existing owners and a growing public awareness of the benefits of electric ownership.
One of the most promising signs for future demand is the high level of repeat EV ownership. In 2026, an estimated 243,000 franchise EV leases will expire—more than triple the number in 2025—and about 62% of those lessees are expected to replace their vehicles with another EV. The 2025 U.S. Electric Vehicle Experience (EVX) Ownership Study also found that 94% of current EV owners plan to consider an EV for their next purchase or lease, with 79% saying they “definitely will.”
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While sales have temporarily slowed, consumer intent to buy electric vehicles continues to rise. The number of active car shoppers who said they were “very likely” to consider an EV reached 24.2% in October, the highest level since January 2025. Overall, nearly 60% of potential buyers said they are at least “somewhat likely” to go electric within the next 12 months—a 2.6-point increase from September.
Cost savings remain the strongest factor driving satisfaction and loyalty. The report found that 86% of EV owners said their vehicles deliver on the promise of lower operating costs than gasoline models. Sixty percent said their EV is “much less expensive” to own, while another 26% said it is “slightly less expensive.” Beyond savings, owners also cited driving performance, design, and advanced technology as key motivators for choosing electric.
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Despite the loss of federal incentives, J.D. Power’s data suggests that the U.S. EV market remains resilient. Analysts expect short-term fluctuations to stabilize as infrastructure expands and new models reach the market. “While growth may slow temporarily,” the report concluded, “the electric revolution is still charging ahead.”