Without More Tax Incentives, The US EV Market Turns Out To Be Still Tough

In 2025, Tesla Model Y continues to be the best-selling electric vehicle in the United States which sold up to 232,000 units until October. (Photo: Tesla)

JAKARTA The end of the federal tax incentives in the United States amounting to US $ 7,500 did not dampen consumer interest in electric vehicles (EVs).

In a report by the November 2025 edition of the JD Power E-Vision Intelligence, quoted from Drive Tesla, Wednesday, November 12, it was stated that although the EV market was experiencing a short-term slowdown due to the decline in sales, basic demand and loyalty of owners actually showed extraordinary resilience, especially among experienced EV users.

Interesting https://t.co/m3quFY0DHs

— Elon Musk (@elonmusk) November 12, 2025

Interesting https://t.co/m3quFY0DHs

— Elon Musk (@elonmusk) November 12, 2025

Interesting https://t.co/m3quFY0DHs

The impact of stopping the incentives was felt directly. In October, the first full period without incentives witnessed a sharp decline in EV sales by up to 53 percent. EV market share fell from 12.9 percent in September to only 6 percent of total new vehicle sales. Analysts rated this decline as a rebound effect' after many consumers rushed to buy a vehicle before the incentive deadline ended.

J.D. Power predicts this condition will suppress sales volume in the next few months. However, they insist that the EV market will not actually fall, as there are still a number of positive supporting indicators.

One of the strongest signals comes from the level of loyalty of EV drivers. Based on projection, about 62 percent of the 243,000 EV tenants whose contracts expire in 2026 (three times more than 2025) will most likely re-elect electric vehicles. This finding is also in line with the results of a separate study, 2025 US Electric Vehicle Experience (EVX) Ownership Study, which shows that 94 percent of EV owners plan to consider electric vehicles for the next purchase or lease. In fact, 79 percent of them stated that they would definitely buy EV again.

Not only from the old owner side, the interest of new buyers has also increased. The number of potential buyers who said it was very possible to buy EVs rose to 24.2 percent in October, the highest figure since January 2025. Overall, nearly 60 percent of respondents admitted that it was possible to switch to electric vehicles in the next 12 months, up 2.6 points from September.

EV's main attraction remains at operational cost efficiency. As many as 86 percent of EV owners agreed that their vehicles actually provide savings compared to gasoline-engined cars. Of these, 60 percent said EV ownership costs were "much cheaper", while another 26 percent called them slighter'. In addition to efficiency, modern performance, design, and technology factors are also strong reasons that continue to attract consumers interest in EVs.

Overall, even though the United States EV market was shaken by the loss of federal incentives, its foundation remained solid. With high loyalty from the old owners, growing new interests, as well as tangible cost benefits, the revolution of electric vehicles in the US seems to be continuing to accelerate.