New figures show the American electric vehicle market contracting sharply in 2026 after the removal of federal purchase support, while hybrid vehicles gained ground as buyers sought lower-cost options.
Motor Intelligence reported that U.S. EV sales fell 30.7 percent during the first nine months of 2026, a downturn that followed the September 2025 expiry of the federal $7,500 tax credit for eligible new electric vehicles. The shift has reshaped the competitive picture among manufacturers.
Tesla, the market leader, posted a 14 percent decline. Traditional automakers were hit harder: Ford's EV sales dropped 68 percent and General Motors fell 43 percent, while startup Rivian bucked the trend with a 29 percent increase. Hybrid sales rose 23 percent over the nine months and captured 15.6 percent of the new-vehicle market, and used EV sales climbed 19 percent.
Analysts say affordability has become the central barrier in the absence of federal incentives, with fewer inexpensive EVs on offer and restrictions limiting the market entry of lower-priced Chinese models. The data suggests American interest in electrification remains, but buyers are increasingly selective on price and practicality.
Sources: Yahoo Finance; Motor Intelligence.
