A Ford Mustang Mach-E EV vehicle at a Ford dealership on Thursday, October 16, 2025 in Los Angeles, California, USA.
Kyle Grillot | Bloomberg | Getty Images
DETROIT — Sales of all-electric vehicles plummeted last month after federal incentives of up to $7,500 for electric vehicle purchases ended, multiple automakers said Monday.
ford motorKia Motors and Hyundai Motors reported significant declines in EV sales as many buyers postponed their purchases before the credits ended due to changes made by the Trump administration.
Ford, which ranked third in U.S. EV sales through the third quarter, reported a 25% decline in total electric vehicle sales in October compared to the same period last year. This includes a 12% decrease in the Mustang Mach-E crossover and a 17% decrease in the F-150 Lightning.
Kia Motors and Hyundai Motors reported sales of their top EV models were down 52% to 71% year over year. The drop was significantly larger month-on-month, as September ended a record quarter for EV sales in the US before the credit card period ended.
Reported sales of some models, such as Hyundai’s electric vehicles Ioniq 5 and Ioniq 9, fell by 80% and 71% from September to October, respectively. It was a similar story for similar vehicles from Kia Motors, which is owned by Hyundai but operated separately, primarily in the United States.
“We saw strong EV demand as the federal tax credit expired, and while that change temporarily disrupted the market, we are confident the market will reset,” Hyundai Motor North America CEO Randy Parker said in a release.
Meanwhile, sales of hybrid vehicles to automakers are expected to continue to increase. According to the automakers, sales of such models in October were encouraging.
Although a limited number of automakers report monthly rather than quarterly sales, the results provide an early indicator of the expected decline in EV sales after federal incentives end.
“With the trust gone, the market seems to be settling into a more natural rhythm,” said Jessica Caldwell, head of insights. carmax’s Edmunds said in a blog post Monday. “October marks the beginning of a reset period, defined by buyers motivated by genuine interest in EV ownership rather than incentive-driven urgency.”
Ahead of the end of EV incentives, several auto executives, including Parker and Ford CEO Jim Farley, were predicting a significant drop in EV sales.
Farley said late last month that he “wouldn’t be surprised” if EV sales fell from about 5% market share after incentives ended in September at 10% to 12%.
teslaboasts a market share of 43.1%, general motorsDomestic sales of all-electric vehicles through the third quarter were at a record 13.8%, leading the U.S. auto industry this year, according to data provided to CNBC by Motor Intelligence.
Cox Automotive’s Kelley Blue Book estimates that U.S. EV sales hit a record high in the third quarter, reaching 438,487 units. This was an increase of 40.7% quarter-over-quarter and 29.6% year-over-year.
