Why Americans are losing interest in electric vehicles

Analysts say interest in electric vehicles is waning among American consumers after the end of federal tax incentives and amid continuing concerns about cost, repairs and charging capability.

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30 termination of federal EV tax credits — a $7,500 new-vehicle tax credit and a $4,000 used-car tax credit — that were repealed under President Trump’s “big, beautiful bill,” which was signed into law in July.

The deadline led to an increase in the number of buyers, but sales have declined since then, Evan Drury, Edmunds’ director of insights, told FOX Business.

“If you look at the recent months — October and November — you will see that it has not stopped, it has decreased significantly,” Drury said.

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With those incentives gone, the coming months will reflect what organic consumer interest in electric vehicles looks like, Stephanie Valdez Streety, director of industry insights at Cox Automotive, told FOX Business.

“I think in the next six months, we’ll probably see the market get to that place of normal demand without that carrot of stimulus,” Valdez Street said.

But the cooling trend began long before the credits expired. According to a AAA poll released in June, just 16% of American adults said they were “very likely” or “likely” to buy an all-electric vehicle as their next car, down two percentage points from last year and down nine percentage points from 2022.

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Electric cars parked at a Tesla charging station in Sausalito, California. (Justin Sullivan/Getty Images/Getty Images)

AAA found that high battery repair costs and purchase prices remain a major barrier for consumers. Electric vehicles cost about $10,000 more on average than gas-powered vehicles, Valdez Streete said.

“Affordability is a big issue when it comes to electric vehicle adoption,” she said, adding that many consumers don’t realize that EVS typically have an eight- to 10-year battery warranty.

“Infrastructure is another barrier,” Valdez Streete said. “…I think consumers are thinking well, what happens when I have to go on a long trip or when I take a vacation? I want to be able to have infrastructure that is accessible, reliable and easy to use.’”

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EVgo fast charging stations in South San Francisco, CA. (David Paul Morris/Bloomberg via Getty Images/Getty Images)

Former Energy Secretary Dan Brouillette recently said he believes electric vehicles will remain part of the auto market but “we have to understand where they fit.”

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“It’s a niche market right now, and it’s probably going to stay that way for some time,” Brouillette told FOX Business Network’s “Varney & Co.” Thursday. “And I think the rules that the president is eliminating…he’s absolutely right about that.”

Trump on Wednesday announced a reset of federal fuel standards that were strengthened under the Biden administration, which the White House said would save “a total of $109 billion” for American families.

FOX Business’ Emma Colton contributed to this report.