- Electric vehicles (EVs) accounted for 10.5% of all cars sold in the U.S. in the third quarter
- The number was inflated by the rush to claim EV tax credits before they expired
Americans bought over 438,000 electric vehicles (EVs) in the third quarter of 2025 – a record number. EVs accounted for 10.5% of all new cars sold, according to Kelley Blue Book parent company Cox Automotive.
The figure, however, was inflated by a rush to claim the federal government’s $7,500 EV tax credit before it expired at the end of September.
Fourth-quarter numbers will likely be much lower, as many who would otherwise have bought in Q4 rushed to shop in Q3 while they could still claim the discount.
Some automakers have extended their own $7,500 discounts to keep the vehicles as affordable as possible for the rest of this year.
Related:
- BMW, Stellantis Extend $7,500 EV Tax Credit Themselves
- GM Changes Plan to Continue $7,500 EV Discount
Tesla Market Share Crashing
- Once more than three-quarters of the EV market, Tesla held just a 41% market share
Tesla once held more than 75% of the EV market, but has seen its market share fall dramatically as more automakers have introduced competing EVs. The company held a 41% market share in Q3, down from 49% a year ago.
The 10 Best-Selling EVs of Q3
| Rank | Model | Q3 Sales |
| 1 | Tesla Model Y | 114,897 |
| 2 | Tesla Model 3 | 53,857 |
| 3 | Chevrolet Equinox EV | 25,085 |
| 4 | Hyundai Ioniq 5 | 21,999 |
| 5 | Honda Prologue | 20,236 |
| 6 | Ford Mustang Mach-E | 20,177 |
| 7 | Volkswagen ID.4 | 12,470 |
| 8 | Audi Q6 e-tron | 10,299 |
| 9 | Ford F-150 Lightning | 10,005 |
| 10 | Chevrolet Blazer EV | 8,089 |
EV Market Likely to Shift Dramatically Now
- Third-quarter numbers were pumped up by government support, while fourth-quarter numbers will fall without it
- The market will find its level sometime next year, but leave the U.S. lagging well behind the outside world
The third quarter marks the first time EVs have made up a double-digit percentage of car sales in the U.S. But it might be the only time for several years.
“The training wheels are coming off,” notes Cox Automotive Director of Industry Insights Stephanie Valdez Streaty. “The federal tax credit was a key catalyst for EV adoption, and its expiration marks a pivotal moment. This shift will test whether the electric vehicle market is mature enough to thrive on its own fundamentals or still needs support to expand further.”
The U.S. market lags well behind the rest of the world in EV adoption. The International Energy Agency projects that 25% of all cars sold worldwide this year could be electric.
