| By Barry Yao |
Tesla, GM Set Records While Rivian Trims Outlook
US electric vehicle sales remained healthy as the government’s clean vehicle tax credit expired. Tesla’s EV sales surged to a record high in the third quarter of 2025, signaling that American consumers rushed to take advantage of expiring incentives. Tesla delivered 497,099 vehicles between July and September and produced 447,450 vehicles, a 29% jump from its second quarter sales. Automaking giant General Motors also set a sales record in Q3 with 66,501 vehicles delivered. According to GM’s release, the company has already sold more EVs by the third quarter than in all of 2024. Meanwhile Rivian narrowed its delivery expectations to 41,500-43,500 vehicles,a 16% drop in sales compared to last year.
Federal Support Shifts to EV Infrastructure
The surge in EV sales was expected, as the tax credit gave buyers of new vehicles $7,500. Established under the Biden Administration’s Inflation Reduction Act, the credit sought to boost US manufacturing, sales, and adoption. As the tax credit sunsets, Biden’s National Electric Vehicle Infrastructure Program continues funding nationwide EV charger installation, providing $5 billion to acquire, install, connect and maintain charging stations. The program initially faced headwinds when the Department of Transportation temporarily paused funding in February, but resumed following court challenges.
Market Realignments After Tax Credit Sunset
EV sales are expected to slow immediately. The International Energy Agency projects 45 million global EV sales by 2030, amounting to 35% of the total market. The tax credit sunset arrives at a critical juncture as China solidifies its global EV industry lead. Half of Chinese car sales in 2024 were EVs, compared to just 9% in the US in the same period.
American automakers are bracing for change. One key driver of EV sales was price parity with conventional cars. Without the tax credit, consumers face higher upfront costs, pushing marginal buyers toward gas alternatives in the short term. The sales drop will force automakers to adjust production and financing strategies. 0% APR and similar offers can help, but their impact pales next to direct government incentives.
The images in this article were created using an AI image generator. All illustrations are ©Intelliwings.
