The United States sold about 1.5 million electric cars in 2025, a slight decline from 2024 and a market share of roughly 10%, according to the IEA's Global EV Outlook 2026. Sales dropped about 45% in the fourth quarter as buyers pulled forward purchases ahead of the removal of federal tax credits.
With the tax credit gone, the IEA expects virtually no direct government financial support for electric car purchases in the United States in 2026. Automakers including Tesla have introduced lower-priced trims and rivals such as Hyundai offered early discounts, and price cuts to mass-market electric models are expected to continue through the year.
Neighbouring Canada has taken a different approach. Under a new agreement, a limited quota of 49,000 electric vehicles manufactured in China can enter Canada at a substantially lower tariff than the previous 100% surtax, with more than half of the first allocation already taken up by early August.
The diverging trajectories underscore how regional policy decisions are now the dominant force shaping the global electric vehicle transition.
