US New EV Sales Fell 20 Percent in Second Quarter but Used EV Sales Hit Record and Global Sales Rose

US sales of new electric vehicles fell 20 percent in the second quarter from a year earlier, according to Cox Automotive. Sales still increased 15 percent from the first quarter, and used EV sales hit a record. The Trump administration ended a $7,500 federal tax credit for EV buyers in October 2025 and removed financial penalties for automakers that violated emission rules.

Cnn reported that legacy automakers recorded tens of billions of dollars in charges against earnings over the past year to reduce EV production plans. Tesla, the only automaker that had made a profit selling EVs to Americans, now appears more focused on humanoid robots.

Stephanie Valdez Streaty, director of industry insights for Cox Automotive, said demand softened after federal incentives expired but automakers cannot simply walk away from electrification.

Ivan Drury, director of insights for Edmunds, said prior incentives and regulations created a false level of demand. He added that some natural EV demand remains in the US market. Worldwide, pure battery electric vehicle sales rose to about 14 million in 2025 from 11 million in 2024, the International Energy Agency said.

BYD surpassed Tesla as the world’s largest EV maker last year, and 55 percent of Chinese auto sales in 2025 were some form of EV. More than 200 Chinese EV models sell for less than $25,000, with some as low as $10,000, Reuters reported. The latest average price of a new US EV stands at $56,377, Edmunds data showed.

The Commerce Department ruled that Chinese cars cannot be legally sold in the United States. Ford announced a partnership with Renault in December 2025 to develop a small, cheap EV for Europe. Ford CEO Jim Farley said the company is in a fight for its lives in the industry.