Why Are Electric Vehicle Sales Dropping Right Now?
If you’ve been following the electric vehicle (EV) market, you might have noticed a surprising shift. After years of steady growth, EV sales in the U.S. have actually started to slide. According to the latest registration data, May saw a 5.9 percent drop in new EV registrations compared to the same month last year. That’s not just a blip—it’s the second month in a row of declines, nudging EV market share down to 7.1 percent from 7.5 percent a year ago.
So what’s behind this sudden cooling? The answer isn’t as simple as “EVs are too expensive.” While price remains a factor, industry analysts like Tom Libby from S&P Global Mobility point to deeper issues: range anxiety, patchy charging infrastructure, and a product lineup that doesn’t always match what buyers want. Even with automakers slashing prices and offering incentives, those hurdles are proving tough to clear.
Which Automakers Are Feeling the Pinch—And Who’s Bucking the Trend?
Tesla still leads the pack by a mile, with 42,861 new registrations in May. But here’s the twist: Tesla’s numbers are down 12 percent from last year. That’s a big deal for a brand that’s long been synonymous with EV momentum. Some of this slump can be traced to shifting public sentiment, including the impact of Elon Musk’s high-profile political stances, which have made headlines and, in some cases, alienated potential buyers.
Other big names aren’t immune. Ford’s EV registrations slipped 6 percent, Hyundai’s dropped a hefty 22 percent, and Rivian saw a 25 percent dip. Even BMW, which has been pushing hard into the electric space, posted a 21 percent decline.
But it’s not all doom and gloom. Some brands are defying the trend. Honda’s EV sales skyrocketed 266 percent, and Acura’s numbers jumped an eye-popping 2,911 percent (though that’s off a very small base, so take it with a grain of salt). Chevrolet, meanwhile, posted a 122 percent gain, and Cadillac and Nissan also saw double-digit growth. Clearly, the EV market isn’t one-size-fits-all.
What’s Really Holding Back EV Adoption?
Let’s dig a little deeper. If price isn’t the only barrier, what’s stopping more people from going electric? For many, it comes down to three things: range, charging, and choice.
First, range anxiety is still real. While newer models can go farther on a charge, plenty of buyers worry about running out of juice on a road trip—or even during a long commute. Second, charging infrastructure is lagging behind. In some cities, finding a fast charger is a breeze. In others, it’s like hunting for buried treasure. And third, the EV lineup is still evolving. Not every automaker offers the body styles, features, or price points that mainstream buyers want.
There’s also a political wild card in play. Earlier this year, EV sales surged as rumors swirled that the $7,500 federal tax credit might soon disappear. When those fears faded, so did the urgency to buy. Now, with confirmation that the credit will end on October 1, we might see another rush as buyers scramble to lock in the rebate.
Are There Signs of a Comeback on the Horizon?
Despite the recent slump, there are reasons for optimism. For one, some brands are proving that the right product at the right price can still move the needle—just look at Chevrolet’s surge. And with the federal tax credit set to expire, expect a late-year spike in sales as buyers race the clock.
Meanwhile, used EVs are quietly making a comeback. As new EV prices remain high for many shoppers, the used market is becoming more attractive, offering affordable entry points for those curious about going electric without the sticker shock.
What Should Automakers—and Buyers—Do Next?
For automakers, the message is clear: incentives alone won’t cut it. They’ll need to double down on expanding charging networks, improving battery technology, and offering a broader range of models that fit real-world needs. For buyers, it’s a good time to keep an eye on deals—especially as the tax credit deadline approaches.
The big takeaway? The EV market isn’t about perfection—it’s about smarter adjustments. Start with one change this week, and you’ll likely spot the difference by month’s end. Whether you’re an automaker, a dealer, or a driver, the next move could make all the difference in this fast-evolving landscape.