EV Hype Fizzles as Tax Credits End and Real Costs Smack Buyers in the Face [WATCH]

Interest in electric vehicles is declining among American consumers following the expiration of federal tax incentives and ongoing concerns about affordability, repair costs, and charging access, according to analysts assessing recent market activity.

Demand for EVs dropped after the Sept. 30 termination of federal tax credits — a $7,500 new-vehicle credit and a $4,000 used-vehicle credit — which were eliminated under President Donald Trump’s “big beautiful bill,” signed into law in July.

The approaching deadline prompted a wave of last-minute purchases before the incentives expired, but analysts say sales have since cooled.

“If you look at the most recent months — so October, November — you’re going to see that it hasn’t come to a halt, but a noticeable drop,” Ivan Drury, director of insights at Edmunds, told FOX Business.

He added that the industry will now get a clearer view of true consumer interest without the influence of federal subsidies.

Stephanie Valdez Streaty, director of industry insights at Cox Automotive, said the coming months will reveal how the market functions without federal incentives shaping buyer behavior.

“I think in the next six months, we’re probably going to really see the market get to that place of natural demand without that carrot of an incentive,” Valdez Streaty said.

This Could Be the Most Important Video Gun Owners Watch All Year

The slowdown, however, began well before the credits ended.

A June survey released by AAA found that only 16% of U.S. adults said they were “very likely” or “likely” to purchase a fully electric vehicle as their next car.

That figure was down two percentage points from the previous year and nine points from 2022.

Major obstacles identified in the survey included high repair and battery replacement costs.

Valdez Streaty noted that EVs currently cost about $10,000 more on average than comparable gas-powered vehicles, contributing to hesitation among buyers.

“Affordability is a big issue with EV adoption,” she said, adding that many consumers are unaware that EVs typically come with battery warranties between eight and ten years.

Charging infrastructure remains another significant concern. “Infrastructure is another barrier,” Valdez Streaty said.

“I think consumers think about well, ‘What about when I have to go on that long commute or I have a vacation? I want to be able to have accessible, reliable, easy-to-use infrastructure.’”

Former Energy Secretary Dan Brouillette echoed those concerns when discussing EV adoption trends.

He said he believes electric vehicles will continue to be part of the automotive landscape but argued that expectations should reflect current market realities.

“It’s a niche market at the moment — probably will continue to be that way for some time,” Brouillette told FOX Business Network’s “Varney & Co.” on Thursday.

“And I think the rules that the president is rescinding… he’s absolutely correct in this.”

On Wednesday, President Donald Trump announced a reset of federal fuel standards that had been heightened under the Biden-Harris administration.

According to the White House, the change will save “$109 billion in total” for American families.

Industry analysts expect EV adoption to remain steady but limited in the near term, with affordability and infrastructure access continuing to shape consumer decisions as the market adjusts to post-incentive conditions.