2025 has been a banner year for U.S. EV sales. 

Autos generally have been strong performers all year, but EVs have been exceptionally bright. 

New vehicle sales for September are projected to rise 0.1% to 1.23 million, according to a joint forecast from J.D. Power and GlobalData.

For the year, J.D. Power’s seasonally adjusted estimate is for 16.2 million new-vehicle sales, a 300,000-vehicle increase year over year. 

Much of that increase has been driven by electric vehicles that are on pace to exceed 12% market share, a 2.6% year-over-year increase, in the U.S. for the first time.

“The biggest driver of September’s strong sales pace is temporarily inflated demand for electric vehicles. The federal EV tax credit expires at the end of the month, which is causing many shoppers to accelerate their purchase,” said J.D. Power Data Analytics President Thomas King.

Car buyers know the end is coming, so they are flocking to dealerships. However, with the tax credit set to expire on Tuesday, September 30, U.S. car brands are fighting to keep their sales high. 

The U.S. EV tax credit is expiring after 15 years.

Image source: Fallon/AFP via Getty Images

Ford, GM to extend $7,500 EV tax credit beyond deadline 

Ford  (F)  and General Motors  (GM)  are moving to provide EV subsidies now that the government is stepping back. 

The top two U.S. OEMs are rolling out programs for dealers to offer customers the tax credit through the end of the year. 

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“We worked with our dealers on an extended offer for customers to benefit from the tax credit,” GM told Reuters. 

Meanwhile, Ford says it is working to provide EV customers with competitive lease payments through Ford Credit (its auto financing arm) until December 31. 

Ford and GM consulted with the Internal Revenue Service to come up with the programs. 

Ford Credit and GM’s financing arm will initiate the purchase of the EVs by making down payments on them. These down payments would qualify the financing arms for the $7,500 tax credit. 

Dealers can then offer leases on those EVs to customers for several more months, with the tax credit factored into the lease rate, according to the report. 

U.S. car buyers flock to take advantage of EV tax credit

U.S. electric vehicle sales have taken off in 2025 as car buyers flocked to dealers to take advantage of the $7,500 tax credit before it expires at the end of September.

EV sales rose to 9.9% of all new U.S. car sales in August, a 10% jump from the 9.1% share held in July and the highest-ever record, according to Cox Automotive data.

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Market share increased despite an uptick in prices, as the average transaction price (ATP) for an EV was $57,245 in August, a 3.1% increase. The ATP for a traditional new vehicle rose just 0.5% to $49,077.

So despite being more expensive and experiencing a larger price increase, total EV sales in the U.S. reached a record of 146,332 in August.

“With government-supported EV tax credits set to expire at the end of September, current sales trends suggest Q3 2025 will set an all-time record for EV sales in the U.S.,” according to Cox Automotive. 

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