(Credit: Emily Forlini)
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Following an early 2025 decline in EV sales, Americans bought more electric cars in August than ever before, making up 9.9% of all new cars sold, according to Kelly Blue Book.
Shoppers could be trying to buy before the $7,500 federal tax credit expires on Sept. 30 per Trump’s Big Beautiful Bill. The $4,000 used EV credit and a leasing loophole are also going away. So, whether you're buying new or used, or leasing, you’ll soon be paying more.
People are buying many types of EVs, not just Teslas. In fact, Tesla's market share fell last month to 38%, an eight-year low, even though many of its core models qualify for the credit, and shoppers could be trying to cash in. At the same time, there are many compelling alternatives to Teslas, from brands like Chevrolet, Hyundai, Honda, Ford, and more.
Sales could continue to climb through this month ahead of the deadline, but the big question is whether they sustain that growth afterward. Many are still concerned about battery longevity, the upfront price of the car, and public charging options.
In August, the average buyer paid $57,245 for an EV, and that's factoring in the tax credit. For all cars, shoppers paid an average $49,077, a 2.6% year-over-year increase. In fact, August saw the largest one-month price increase in two years, Kelly Blue Book says. That could be due to tariffs squeezing automakers, disincentivizing them from giving discounts. Another factor is the arrival of 2026 model year vehicles at dealers.
In positive EV news, the public charging network has continued to grow despite Trump's Department of Transportation freezing federal funds for it during his first month in office. As of Aug. 11, the administration is re-releasing the funds as long as the states provide updated plans on how they'll use the money.