<ul><li>U.S. EV registrations collapsed by 41% in January.</li><li>As a result, electric cars now have a 5.1% market share, down from 8.3% in January of last year.</li><li>EV registrations have fallen year over year in every month since the $7,500 federal tax credit went away on Sept. 30.</li></ul><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_first_1773653032"></div></div><p>American car buyers–and car manufacturers–are getting to grips with a new and unforgiving reality. In January, electric car registrations in the United States fell by a whopping 41% compared to the same period last year, marking yet another month of decline since the $7,500 federal tax credit was canceled on September 30, 2025.</p><p>The vast majority of car brands saw registrations go down in the first month of this year, according to data from S&amp;P Global Mobility quoted by Automotive News. Registration numbers are used as a proxy for sales because some car companies, like Tesla, don’t separate U.S. deliveries from their global numbers, nor do they report monthly figures.</p><section>        <span class="svg-search">                                                </span>                            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Lucid was among the few automakers that saw a solid increase in registrations in January." width="16" height="9" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png"/>        <div><p>Lucid was among the few automakers that saw a solid increase in registrations in January.</p></div>    <div>Photo by: Patrick George</div></section><div></div><p>In total, 59,802 EVs were registered in the U.S. in January, in a market where just under 1.2 million new cars were registered. The share of electric vehicles fell to 5.1% from 8.3% in January of last year, while gas cars increased their market share by 2.3 percentage points to reach 76.6%. Hybrids climbed 1 percentage point to 14.7%.</p><p>It’s a vicious cycle. Buyers can no longer rely on the federal tax credit to get a better price on a new EV, which slims down the customer pool for dealers. Meanwhile, car manufacturers no longer have to pay penalties if they don’t sell enough EVs, so there’s no incentive for them to push new models.</p><p>In fact, after the $7,500 incentive went away on September 30, 2025, several automakers have canceled or discontinued some of their electric models. The Ford F-150 Lightning was put to rest, despite being America’s best-selling electric pickup. Tesla will discontinue the slow-selling Model S and Model X in the second quarter, while Honda and Ram have canceled their upcoming flagship EVs before they even hit the dealership floor, killing billions of dollars of investments in the process.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_1_1773653032"></div></div>    <section>        <div>            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/custom/share/evus_newsletter_widget_logo.svg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="logo" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/custom/share/evus_newsletter_widget_logo.svg"/>        </div>        <div>            <div>Stay informed with our newsletter every weekday</div>                        <div>                <div></div>                back            </div>                                             Subscribe                <span class="widget-newsletter__legal">For more info, read our Privacy Policy &amp; Terms of Use. </span>                    </div>    </section><p>However, in all the red that represents the registration numbers for EVs in January, a few bright green spots can be seen. Cadillac, America’s second-best-selling EV maker, climbed 8.1%. Toyota did even better, with a 25% increase, while Lucid almost doubled its registrations with a 97% jump compared to the same month last year.</p><div><div id="ads_6122441_EV_ev_us_Native_native_3_1773653032"></div></div><div><div id="ads_6122441_EV_ev_us_Native_native_2_1773653032"></div></div><p>Lexus also fared very well, percentage-wise, with a 166% increase, as did Maserati, which recorded a 140% spike. That said, despite the glowing upticks, the Japanese luxury brand only sold 810 EVs in January, while Maserati found 12 new customers for its electric cars.</p><p>In contrast, Tesla, the biggest EV player in America, sold 32,123 cars, down 26% year-over-year.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_2_1773653032"></div></div><p>“It’s what we expected,” said Tom Libby, an analyst at S&amp;P Global Mobility. “It’s a reset, and it’s going to be a very slow process moving forward.”</p><section> <p>More Stuff Like This</p> <div> <div>                                     Everything You Need To Know About The Rivian R2, Plus We Drive The 2027 Chevy Bolt </div> <div>                    Rivian R2 Vs. Tesla Model Y: Which American Mid-Size EV SUV Is Best? </div> <div>                    'The Chinese Will Eat Our Lunch': Europe's EV Trucking Industry Is Scared As Hell </div> <div>                    Lucid Announces Cosmos And Earth EVs To Battle Tesla Model Y </div> </div> </section><p>While some car companies are retreating and reanalyzing their ambitious goals, others are charging forward with more models. Rivian is launching its long-awaited R2 mid-size SUV this spring, which will open up a new market segment for the California startup.</p><p>Lucid is also expanding into the more affordable mid-size category with the upcoming Cosmos and Earth crossovers, while traditional automakers are trying to compete, too. The new BMW iX3, Volvo EX60, and Mercedes-Benz GLC are promising lightning-fast charging speeds and long driving ranges–two features that have already drawn in a lot of customers in Europe.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_3_1773653032"></div></div><p>Speaking of Europe, EV registrations surged in January, leaving the U.S. in the dust. Europeans bought nearly 190,000 EVs in this year’s first month alone, leading to a 13.9% increase year-over-year and boosting the market share from 14.9% to 19.3%</p>                                                                                                                                                                                                                                                                                <section><p><span>We want your opinion!</span></p><div><p>What would you like to see on Insideevs.com?</p>Take our 3 minute survey.</div><p>- The InsideEVs team</p></section>                                                                                                    <div>                                <div>                                    Share this Story                                </div>                                <div>                                    <ul>                            <li>                                                                                                                                            Facebook                                                                        </li>                                    <li>                                                                                                                                            X                                                                        </li>                            <li>                                                                                                                                            LinkedIn                                                                        </li>                            <li>                                                                                                                                            Flipboard                                                                        </li>                                                    <li>                                                                                                                                            Reddit                                                                        </li>                            <li>                                                                                                                                            WhatsApp                                                                        </li>                            <li>                                                                                                                                            E-Mail                                                                        </li>                                                                                    <li>                                                                                                                                                 copy                                                                        </li>                    </ul>                                </div>                                                                                                            <div>                                            <div>                                                                                                                                                                                                    <span class="top-counter-comments-label">GO TO COMMENTS</span>                                                                                                     <div>                                                        <span>(</span>                                                        <div></div>                                                        <span>)</span>                                                    </div>                                                                                            </div>                                        </div>                                                                                                </div>                                                            <div>                                    <div>                                        <span>Got a tip for us? 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<p>U.S. EV registrations fell by 41% in January, dropping market share to 5.1% from 8.3% last year, following the end of the $7,500 federal tax credit. While most brands saw declines, Lucid, Cadillac, Toyota, and Lexus reported increases in registrations. Tesla's sales dropped by 26%. The market is adjusting as automakers reconsider their EV strategies, with some discontinuing models. Despite challenges, new models from Rivian and Lucid are set to launch, while European EV sales surged, highlighting a stark contrast with the U.S. market.</p>

- U.S. electric vehicle (EV) registrations dropped by 41% in January, resulting in a market share decline from 8.3% to 5.1%.  
- The decrease follows the cancellation of the $7,500 federal tax credit, affecting both consumer demand and manufacturer incentives.  
- Despite the overall decline, brands like Cadillac, Toyota, and Lucid witnessed significant registration increases, while Tesla experienced a 26% drop in sales year-over-year.

EV Sales Crashed 41% In January–But These Brands Still Grew