The U.S. electric vehicle (EV) market may be cooling in the short term, but consumer enthusiasm for EVs is far from fading. According to the latest J.D. Power E-Vision Intelligence Report for November 2025, while sales declined sharply following the repeal of the federal $7,500 EV tax credit, underlying demand and ownership loyalty remain robust—particularly among existing EV drivers.
Sales Slump Follows End of Incentive
October marked the first full month without the federal incentive, and the impact was immediate: EV sales fell by 53%, dropping from 12.9% of total new-vehicle sales in September to just 6% in October. Many buyers had rushed to complete purchases before the credit expired, creating an artificial sales spike that has now subsided. Analysts say the current downturn likely reflects a “rebound effect” rather than a long-term collapse in demand.
Still, J.D. Power’s findings suggest that the end of the tax credit will affect sales volumes for several months. “The bottom will not fall out of the EV market,” the report notes, pointing to strong loyalty among existing EV lessees and growing consumer awareness of the benefits of electric ownership.
Loyalty Among EV Drivers Fuels Future Demand
One of the most promising indicators for the industry is the high rate of repeat EV ownership. In 2026, approximately 243,000 franchise EV leases are expected to expire—more than triple the number in 2025. Based on current patterns, 62% of those returning lessees are likely to replace their vehicles with another EV.
The 2025 U.S. Electric Vehicle Experience (EVX) Ownership Study found that 94% of current EV owners plan to consider an EV for their next purchase or lease, with 79% saying they “definitely will.” This strong retention rate signals a deepening attachment to electric mobility among early adopters.
EV Consideration on the Rise Despite Sales Dip
While actual sales dipped, consumer intent is climbing. The number of active car shoppers who say they are “very likely” to consider an EV rose to 24.2% in October—its highest level since January 2025. Overall, nearly 60% of potential buyers said they are at least “somewhat likely” to go electric in the next 12 months, a 2.6-point increase from September.
Lower Costs Drive Satisfaction and Retention
Cost savings remain the strongest motivator for choosing an EV. The report found that 86% of EV owners say their vehicles deliver on the promise of lower operating costs compared to gasoline models. Sixty percent said their EV is “much less expensive” to own, while another 26% said it is “slightly less expensive.”
Beyond economics, owners also cited driving performance, design, and technology as key reasons for choosing electric. Even without the federal incentive, those factors—combined with growing model variety and expanding charging infrastructure—are expected to sustain interest through 2026 and beyond.
Bottom Line
Despite a sharp sales correction following the loss of federal incentives, the U.S. EV market remains resilient. Strong loyalty among existing owners, rising consumer consideration, and proven cost-of-ownership advantages suggest that while growth may slow temporarily, the electric revolution is still charging ahead.
