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US EV Sales Collapse After $7,500 Tax Credit Expires

US electric vehicle sales plummeted to 5% market share in October after federal $7,500 tax credit expired, marking the lowest EV penetration since early 2022 and highlighting subsidy dependence.

The dramatic drop in EV sales following the subsidy removal reveals how fragile the electric vehicle market remains without government support. This matters because it shows that despite growing environmental awareness, price remains the primary barrier to mass EV adoption. The collapse suggests that without continued incentives, the transition to electric transportation could slow significantly, potentially delaying climate goals and leaving consumers with fewer affordable clean vehicle options. It also indicates that automakers may need to accelerate cost-reduction efforts to make EVs competitive without subsidies, which could impact future vehicle pricing and availability for all car buyers.