EV Sales Plunge 16% Despite High Gas Prices: A Supply Crisis

Despite soaring fuel prices that make electric vehicles more appealing than ever, Americans are struggling to find electric vehicles on dealer lots. Gas prices jumped from $2.94 to $4.35 per gallon after U.S. and Israeli strikes on Iran in late February, yet battery-electric vehicle sales fell 16% year-over-year. The culprit is a supply failure, not consumer rejection. Hybrid sales climbed 18% over the same period, supported by a 19% increase in hybrid inventory, while EV output was slashed following the removal of the $7,500 federal tax credit in September 2025. General Motors cut over 3,400 EV and battery jobs and redirected a Tennessee plant to grid storage. Ford took a $19.50 billion write-down on its EV operations, halted the making of the F-150 Lightning, and repurposed another facility for gasoline trucks. EV market share briefly hit 11.30% in September as buyers rushed the credit deadline, then collapsed to 4.30% two months later.

Pricing data reveals the supply crunch: median discounts on new EVs narrowed from 9.8% below list in February to 4.7% by June, and inventory fell from around 130 days of supply in Q1 to 78 days in August. Used EV prices climbed 13% by late June, with stock shrinking to 31 days’ worth in May. Washington’s policy settings continue to work against a recovery: rules issued September 28 loosen fuel-efficiency requirements for gasoline vehicles and phase out a credit-trading system in 2028 that had given manufacturers a financial reason to produce EVs. Government analysis suggests the change saves buyers around $1,289 at purchase but projects they will spend roughly $1,600 more on fuel over the vehicle’s life. Finding cheaper models from abroad is also blocked by policy. China accounts for roughly three-quarters of global electric car production, and in 2024 buyers there had access to over 130 electric models priced below $40,000, while their American counterparts could find just four. Import duties exceeding 100% on Chinese-made vehicles, a Commerce Department rule barring cars from manufacturers with Chinese ties from model year 2027, and pending legislation blocking Chinese investment in U.S. auto factories mean that gap is unlikely to close soon. Unless the U.S. reverses its current policy trajectory, EV makers like Massimo Group (NASDAQ: MAMO) could face an uphill task growing their sales over the coming years. The release was distributed by GreenCarStocks, a specialized communications platform focused on EVs and the green energy sector, part of the Dynamic Brand Portfolio @ IBN.