US EV sales are rising again. Here’s why the recovery is set to last.
U.S. electric vehicle sales are rebounding after a sharp decline following the expiration of federal tax credits, driven by sustained high gasoline prices and an expanding range of affordable EV models.
U.S. consumers purchased 262,649 new electric vehicles in the third quarter of 2025, marking two consecutive quarters of growth following a steep decline after federal tax credits expired. While this figure remains below the record 437,487 sold in the third quarter of 2024, analysts at Cox Automotive anticipate continued growth due to persistently high gasoline prices, which show no signs of abating. The rebound extends to the used EV market, where sales rose 26% from July to August and 15% year-over-year, with Ford’s discontinued F-150 Lightning emerging as a dominant resale option due to its reduced price.
The surge in EV adoption is not limited to the U.S., as European drivers purchased nearly 600,000 electric vehicles in September, the continent’s largest monthly total on record. Globally, EV sales increased 17% in September compared to the previous month, reflecting broader trends driven by high fuel costs. Automakers are responding with more affordable and improved electric models, including Ford’s upcoming electric pickup, Subaru’s faster-charging electric SUV, and Rivian’s lower-priced SUV variant, signaling potential for sustained market growth.
The Biden administration’s Department of the Interior has reignited opposition to offshore wind by requesting a federal court to reevaluate a key permit for the Revolution Wind project off Connecticut and Rhode Island. The project, operational since spring, delivered 4,619 GWh to New England in the first nine months of 2025. The DOI’s move, tied to an anti-wind lawsuit, risks delaying permitting talks amid bipartisan energy legislation negotiations in Congress.
The Trump administration’s efforts to address diesel shortages through Russian fuel imports and tax-exempt releases are expected to have minimal impact, as Russia’s fuel exports have plummeted due to Ukrainian attacks on refineries. Diesel prices continue rising globally, with the International Energy Agency projecting market strains to persist through 2027, underscoring the challenges in stabilizing fuel supplies amid geopolitical tensions.