US EV market share stalls amid high prices and expiring incentives

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The US electric vehicle (EV) market appears to have hit a plateau, with new analysis revealing that market share for battery-electric vehicles has remained flat despite a moderate increase in registrations.

According to recent data from S&P Global Mobility, EVs accounted for just 8.6% of the light-vehicle market in June, a slight decline from the 8.8% share recorded a year prior. For the first half of 2025, the market share inched up by only a tenth of a percentage point to 7.5%.

This stagnation comes as a surprise to many industry observers and is attributed to a combination of factors. A primary concern is the high average transaction price for EVs, which stood at nearly $57,000 in June—almost $9,000 more than non-EVs. This lack of affordable options is a significant deterrent for mainstream buyers.

Additionally, the market is facing stiff competition from new hybrid models, with analysts suggesting that these vehicles are appealing to consumers who want to save on fuel without changing their driving habits. The impending repeal of the $7,500 federal tax credit for EVs is also a major headwind, as many consumers are likely waiting to see how the market adjusts.

For EV manufacturers, the prospects are a mixed bag. In the short term, a surge in third-quarter sales is expected as consumers rush to take advantage of the tax credit before it expires in September. However, analysts believe a period of muted sales will follow. The long-term outlook remains promising as automakers plan to release a wave of new, more affordable models in the coming years.

The data also shows a shift in the competitive landscape, with market leader Tesla seeing its registrations drop by 6.1% in June, while legacy automakers like Chevrolet and Cadillac saw surges of 152% and 87% respectively, thanks to new model launches. This signals a new, more volatile chapter for the EV industry, where adaptability and true market resilience will be key to success.

Source: S&P Global Mobility

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