Electric vehicle (EV) sales at U.S. dealerships have plunged 74% following the end of the $7,500 federal tax credit. The data comes from Cloud Theory’s Q3 2025 automotive industry report, “On the Horizon,” released on Oct. 28. The EV sales drop marks one of the sharpest short-term declines in the market’s recent history.
During the week of Sept. 22–28, dealers sold 22,997 EVs. Just one week later, between October 6–12, sales plummeted to 5,929 units.
EV inventories have also fallen significantly, shrinking from 196,255 units in June to 104,050 units by October 12—a 47% reduction. General Motors currently holds the largest EV inventory at 39,164 units, followed by Ford with 21,432 and Hyundai with 14,725.
Japanese automakers maintain far smaller EV stock levels, with Nissan holding 419 units, Toyota 435, and Honda 2,138.
“In the short term, domestic automakers are still sitting on sizable EV inventory levels, a result of aggressive investment and production ramp-ups that defined their prior philosophies,” said Rick Wainschel, vice president of data science and analytics for Cloud Theory. “Meanwhile, many foreign OEMs have taken a more cautious approach and have pulled back EV allocations to the U.S. amid policy uncertainty and margin/tariff pressures.”
Cloud Theory’s report also reveals an overall reduction in total vehicle inventory, which dropped to 2.86 million units from a 12-month high of 3.3 million in December 2024. Monthly vehicle sales declined to 1.12 million units in Q3 2025, compared to 1.18 million in Q2 2025.
Despite the downturn, the average marketed price for new vehicles slightly decreased to $49,537 in Q3 2025, down from $49,887 in Q2 2024, according to Cloud Theory. Manufacturers have so far avoided steep price hikes despite tariff pressures.
“Despite a drop in supply over the past six months, Vehicle Movement has remained remarkably steady, leading to higher Turn Rates,” Wainschel said. “Dramatic price increases related to tariffs have not materialized. That has helped the automotive market stay resilient despite dynamics that have been volatile for much of the past year.”