EV Sales Just Crashed After the $7,500 Tax Credit Disappeared

Electric vehicle sales just fell off a cliff. EV and plug-in hybrid market share dropped below 8% in January 2026—down nearly four percentage points from last year—after the $7,500 federal tax credit disappeared on October 1, 2025. Pure EVs now grab just 6.6% of new retail sales, down 2.9 percentage points year-over-year, while plug-in hybrids sank to 0.9%. Average EV transaction prices jumped 18.1% to $51,981, while gas vehicles crept up just 0.9% to $45,510. Your monthly payment? Now $760 on average—up $24 from last year.