Curated News
By: NewsRamp Editorial Staff
November 05, 2025
US EV Sales Collapse After $7,500 Tax Credit Expires
TLDR
- EV companies like Bollinger Innovations can gain market advantage by focusing on price competitiveness and quality now that federal subsidies have ended.
- The $7,500 federal tax credit expiration caused EV market share to drop from over 12% in September to around 5% in October 2024.
- This market shift encourages EV manufacturers to create more affordable, high-quality electric vehicles accessible to broader consumer segments.
- October 2024 saw the lowest EV sales share since early 2022, dropping from over 8% to around 5% after subsidy removal.
Impact - Why it Matters
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.
Summary
Electric vehicle sales in the United States took a sharp hit in October following the expiration of the federal $7,500 tax credit for clean vehicles on September 30. The market shift was dramatic and immediate, with EV market share plummeting from over 12% of U.S. car sales in September to just around 5% in October. This represents the lowest electric vehicle market penetration since early 2022 and marks a significant decline compared to October of the previous year, when EVs accounted for over 8% of sales. The collapse validates warnings from industry experts who had predicted this downturn would follow the subsidy removal.
The October sales collapse underscores how heavily dependent the electric vehicle market has been on government incentives and subsidies. As the industry adjusts to this new reality without federal support, both car buyers and manufacturers must navigate a transformed landscape where electric vehicles must compete purely on price and quality merits. This challenging environment particularly affects EV brands like Bollinger Innovations, Inc. (OTC: BINI), which now face the difficult task of attracting customers without the financial incentive that previously made electric vehicles more accessible to mainstream buyers. The situation highlights the critical role government policy plays in accelerating or slowing the adoption of clean transportation technologies.
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Source Statement
This curated news summary relied on content disributed by InvestorBrandNetwork (IBN). Read the original source here, US EV Sales Collapse After $7,500 Tax Credit Expires
