Ford and Hyundai See Sharp Drop in EV Sales After End of Federal Credits

Electric vehicle sales took a sharp downturn in October as Ford Motor Company and Hyundai Motor Company reported significant declines following the expiration of U.S. federal tax credits. Ford’s electric vehicle sales dropped nearly 25% year-over-year, with its flagship F-150 Lightning pickup slipping 17% and the Mustang Mach-E falling 12%. Hyundai faced even steeper losses, with the Ioniq 5 plunging about 63% and the Ioniq 6 down 52%. Industry analysts attribute the slump to the end of the $7,500 federal EV tax incentive, which expired at the close of September. Many consumers had accelerated purchases to take advantage of the credit, leaving October demand unusually weak. As a result, overall U.S. EV market share dropped to roughly 5%, down from over 12% a month earlier. Despite the electric vehicle slowdown, Ford’s overall sales rose slightly in October, buoyed by strong demand for pickup trucks. However, both automakers now face mounting pressure to sustain EV momentum without government incentives. Analysts say manufacturers may need to offer deeper discounts or rethink pricing and production strategies to maintain consumer interest. The October figures are being viewed as a turning point for the industry—marking a shift from subsidy-driven sales to a market defined by affordability, innovation, and genuine consumer demand.