Record-breaking electric vehicle sales helped drive major gains for U.S. automakers in the third quarter of 2025, with General Motors, Ford, and Hyundai all reporting strong performance. The surge came as American consumers rushed to take advantage of a $7,500 federal tax credit for EVs before it expired in September.
General Motors and Ford both posted around 8% growth in overall U.S. auto sales compared to the same period last year. GM’s EV sales more than doubled year over year, while Ford saw a 30% increase in its EV lineup. Hyundai reported a 13% rise in total sales for its main brand, with its EV sales also doubling.
The strong results reflect a consumer shift toward electric vehicles, at least in part fueled by the urgency to secure federal incentives that were ending. The federal tax credit, which helped lower the cost of electric and plug-in hybrid vehicles, played a major role in boosting Q3 demand.
According to Cox Automotive, U.S. EV sales for the third quarter were estimated to reach 410,000 units. That would represent a 21% increase from the same quarter in 2024 and mark the highest number of EVs ever sold in a single quarter in the U.S., claiming a market share of roughly 10%.
GM reported that it maintained its position as the top-selling automaker in the U.S. through the third quarter, estimating a market share of 17.2 percent—its strongest showing since 2015. The company credited the growth to its balanced portfolio of both electric and internal combustion engine vehicles, as well as strong pricing and inventory management.
Ford also had a solid quarter. Its EV lineup, which includes models like the Mustang Mach-E and F-150 Lightning, contributed significantly to its growth. However, Ford CEO Jim Farley warned of a likely short-term slowdown in EV sales now that the tax credit has expired. He said he expects EV market share could fall from around 10 to 12 percent to as low as 5 percent in the coming months.
Hyundai, which does not qualify for the U.S. tax credit on many of its EVs because they are not assembled domestically, has responded by cutting prices. The company announced a price drop of up to $9,800 on its 2026 Ioniq 5 and is offering a $7,500 cash incentive on 2025 models to make up for the lost federal credit. Hyundai’s leadership remains confident that the EV market will rebound after a short reset period.
While U.S. automakers thrived, Japanese car manufacturers had mixed results during the quarter. Toyota saw a 16% increase in sales, despite its relatively limited EV offerings. Nissan’s sales rose 5.3%, while Honda posted a slight 2% decline.
Stellantis, the company behind Chrysler and Jeep, saw a 6% year-over-year increase in U.S. sales for the quarter. This marks progress in the company’s ongoing turnaround efforts following years of declining performance in the American market.
With the federal tax credit now gone, some automakers are adjusting their strategies to keep EV sales momentum going. Both GM and Ford have rolled out leasing programs that allow customers to continue benefiting from the $7,500 incentive in a different way. Under these programs, the automakers’ financing divisions purchase EVs from dealer inventory and apply the tax credit to reduce lease costs.
Meanwhile, new policies tied to the expiration of the tax credit include incentives for vehicles assembled in the U.S., regardless of whether they are electric. This shift is expected to influence where manufacturers choose to build future models.
Even as some automakers prepare for a potential dip in sales over the next few months, the long-term outlook for electric vehicles remains positive. The strong Q3 numbers prove that when the price is right, American consumers are ready to adopt EVs at a larger scale.
The challenge now lies in maintaining that momentum. With incentives gone, price cuts, financing options, and new model rollouts will play a crucial role in shaping the EV market’s performance through the end of the year and into 2026.
Some experts believe that after a brief cooling-off period, EV sales will pick up again, especially as more affordable models hit the market and charging infrastructure improves nationwide.
Q3’s record sales make one thing clear: electric vehicles are no longer niche. They are becoming a mainstream option for many American drivers. The question going forward is whether automakers can keep the interest alive—without leaning on federal tax breaks.
