Will The Loss Of The Federal Funds Kill EV Sales?

Last week we shared a list of the Top 10 used vehicles with the biggest 12-month price drops compiled by iSeeCars. EVs made up half the list. This week we share their look at new EV market share, with the end of the federal $7,500 federal incentive for new electric vehicles and the $4,000 incentive for used models set to expire on September 30. iSeeCars says the EV market stalled at 7 percent long before the incentives were set to go away, and suggests the market will correct itself after the 30th.

Not too long ago, many automakers were setting lofty goals for electrifying their model lines. iSeeCars says predictions that electric vehicles would make up between 20% and 50% of new vehicle sales by 2030 were common. But many have since scaled back EV plans and production, with the most recent example being Mercedes-Benz pausing its all-electric EQ sedan and SUV line for the U.S. market.

To get a clearer picture of new EV demand, iSeeCars analyzed electric vehicle market share growth over the past six years. EV share dropped monumentally between 2024 and 2025:

EV Share of 1-to-5-Year-Old Used Cars: June 2020- June 2025

• 2025 - EV Share  3.3% /Growth 14.2% 
• 2024 - EV Share 2.9% / Growth 97.3%
• 2023- EV Share 1.5% / Growth 61.5%
• 2022 -EV Share 0.9% / Growth 91.2%
• 2021 - EV Share 0.5% / Growth 60.5%

For the entire iSeeCars study, click here.