US EV Sales Plunge 25-70% in October After Federal Tax Credit Ends

Electric vehicle (EV) sales in the U.S. experienced a significant decline in October 2025 following the expiration of the $7,500 federal EV tax credit, which had previously boosted sales through September. Hyundai and Kia, two major Korean automakers, saw their EV sales plummet by over 50%, with models like the Hyundai Ioniq 5 and Kia EV6 dropping 63% and 71% respectively. Ford also reported a 25% decrease in EV sales, including declines in popular models such as the Mustang Mach-E and F-150 Lightning. Despite the drop in fully electric vehicle sales, hybrid vehicles from these automakers saw a surge in demand, with Hyundai reporting a 41% increase in hybrid sales. Automakers are responding by adjusting prices, such as Hyundai's significant price cuts on the 2026 Ioniq 5, aiming to maintain competitiveness as the market recalibrates after the tax credit's removal. Industry experts describe this period as a market reset, moving away from incentive-driven purchases toward a more natural sales rhythm.