Are EV sales falling in the USA?
With government-backed sales incentives revoked at the start of October, total EV sales in Q4 plunged to 234,000 units, down 46% compared to Q3 and 36% lower year over year. Sales in the final quarter of 2025 were at the lowest point since Q4 2022. This Tesla exodus isn’t a new pattern. Rising Tesla insurance rates have pushed drivers toward other EVs, and a survey found that Elon Musk became a top reason drivers were getting rid of their Teslas in 2023 — yet most of those drivers still chose to stay electric.Rising Tesla insurance rates have pushed drivers toward other EVs, and a survey found that Elon Musk became a top reason drivers were getting rid of their Teslas in 2023 — yet most of those drivers still chose to stay electric.Tesla remains the EV market leader, by far, even with sales declining for the second year after peaking in 2023. Nearly half of all EVs sold in the U. S. Tesla, mostly the popular Model 3 and Model Y. Tesla sales fell to 589,000 in 2025, down 7% from 2024, or 44,000 units.Tesla CEO Elon Musk said Wednesday that the company would begin phasing out its Model S and Model X electric vehicles this year and retool a California factory to produce humanoid robots instead. The announcement signals an end of an era.
Why are EVs depreciating so fast?
One of the most significant factors influencing EV depreciation is battery life. While modern EV batteries last years longer than they did a decade ago, consumers still worry about battery degradation. A new EV with a 300-mile range today might have a degraded battery with only 250 miles of range after several years. Most electric vehicles left with at least 50% charge can go months without their battery percentage dropping to concerning levels. Some EV batteries might be able to sit comfortably for months at even lower charges depending on the manufacturer.
Is the EV industry in trouble?
A clear global trend But while automakers are slowing their EV plans down significantly, they’re not giving up on them, either. Partly that’s because of the enduring consumer interest; as long as there’s a market, the automakers want to serve it. And partly that’s because the automakers are all global companies. Tesla loses $127 billion in one-day market bloodbath as China car group questions Musk’s pursuit of ‘personal glory’ Tesla’s bad start to the year keeps getting worse. The EV maker’s shares sank over 15% on Monday, bringing its total 2025 losses to over 40%.One bear case for Tesla has it that the company is failing in its core EV market, and CEO Elon Musk is pushing robotaxis, and Optimus robots for that matter, to try and deflect from its declining EV sales, as it shifts away from an EV market it’s finding it increasingly difficult to compete with. Image source: Tesla.
Why are EV vehicles not the future?
CHALLENGES OF EVS Many regions, especially in developing countries, still lack an extensive network of charging stations, leading to range anxiety among potential EV owners. High Initial Costs: Electric vehicles generally come with a higher upfront purchase price compared to their gasoline or hybrid counterparts. How Did Norway Achieve Near-Total EV Adoption? Almost 100 percent of new cars registered in November were electric. The Norwegian experience shows that the economic incentives work, but it also shows that EVs work even in a country with cold weather.EV interest in the United States is at its lowest point since 2019. A recent AAA survey revealed that the top motivators against buying EVs included high purchase prices, range anxiety, and a lack of public charging stations—among others.People just aren’t sure they’re worth it But the household market is proving a tougher nut to crack, with people saying they are mostly put off by the high cost. The average price of a new EV in the US is over $60,000 (£47,433). Prices are similarly high in Europe and the UK .Norway’s 100% EV sales in 13 years: A case study in policy and infrastructure. This is truly mind-blowing: Norway has gone from near-zero sales of non‑emitting battery electric vehicles to now close to 100% of all new passenger car sales—achieved in about 13 years.
Is it worth buying an electric car in 2026?
With more EV models hitting showrooms, leaps in battery technology, and a huge public charging network that is set to expand even further, this year is shaping up to give you the best of what electric driving has to offer. Here’s why 2026 might just be your perfect time to plug in. Rising Tesla insurance rates have pushed drivers toward other EVs, and a survey found that Elon Musk became a top reason drivers were getting rid of their Teslas in 2023 — yet most of those drivers still chose to stay electric.