Demand for electric vehicles in the United States plummeted when the Trump administration axed the $7,500 federal EV tax credit in September last year. While demand is unlikely to recover to the levels experienced before this period, it appears the ongoing war in Iran and high gas prices have triggered a small increase in demand.

Strong quarter sales figures from both Rivian and Tesla provide insight into the changes. In Q3, Rivian delivered 19,248 vehicles. This was largely due to the arrival of the more affordable R2, but it’s entirely possible some R2 buyers were convinced into buying an EV over a similarly priced ICE in part due to high gas prices.

Read: GM’s Electric Vehicle Sales Fell Off A Cliff Last Quarter

Tesla also beat out expectations last year, delivering 486,532 vehicles compared to the 464,000 that had been predicted. Speaking with Bloomberg, TD Cowen analyst Itay Michaeli suggested EVs could be about to start mounting a comeback in the U.S.

Hyundai Dealers Want More EVs

“We are still in the early stages of this looming EV comeback,” he said. “EV market coverage, by our estimation, will grow substantially in the next couple of years by existing players.” Michaeli also believes that demand for advanced new EVs will rise over the next couple of years, thanks to broader use of more advanced autonomous driving systems.

The boss of Hyundai’s North American arm, Randy Parker, also says a growing number of dealerships are asking for more EVs because of high gas prices. While that may be the case, demand for Hyundai’s electric models is still far below previous highs.

Sales Are Still Slow

In September, the carmaker sold just 2,928 Ioniq 5s in the United States, down 65% from the 8,408 sold in September last year. Year-to-date sales are down 53% to 31,112. In addition, September sales of the Ioniq 9 were down 65% to 374 units.

Although a small comeback may be possible, other automotive giants like GM continue to feel the effects of declining EV sales. In the third quarter, every EV sold by Cadillac, Chevrolet, GMC, and Buick experienced a sales decline. It was particularly bad for the Cadillac Lyriq, which was down 50.2%, the Chevrolet Blazer EV, down 84.4%, and the Equinox EV, down 92.4% compared to the year prior.

Newly released sales data from General Motors shows demand for its EVs has fallen off a cliff in the United States, contributing to a company-wide sales decline across the third quarter and through the first nine months of this year.

It’s no secret that EV sales in the US have dropped since the Trump administration axed the $7,500 federal tax credit last September. However, we suspect even GM couldn’t have anticipated just how far sales would decline.

Read: GM Keeps 70 Cents Of Every Subscription Dollar And Just 4 Cents On A Car Sale

The bad news starts at Cadillac. In Q3, sales of the Escalade IQ and IQL dropped 29.2% to 1,604 units. In addition, Cadillac Lyriq sales are down 50.2% to 3,617 units, Optiq sales have declined 6.9% to 4,550, and sales of the Vistiq fell 34.1% to 2,587 units. Total sales at the Cadillac brand were down 30% to 32,650.

Chevrolet Suffers

Then there’s Chevrolet, which saw its sales decline 4.6% to 437,321 vehicles. The Blazer EV suffered an 84.4% fall in sales to just 1,261 units. In addition, sales of the axed BrightDrop 400 and 600 vans were down 43.6% to 1,344. The biggest loser was the Equinox EV, with sales declining 92.4% from 25,085 in Q3 2025 to just 1,905 last quarter. Year-to-date sales are down 65.6% to 18,154.

Demand for the Silverado EV has also dried up. Across July, August, and September, just 1,655 were sold, down 58% from 3,940. Year-to-date, just 5,327 have been sold, a 43.2% reduction from the previous year.

Things aren’t any better at GMC. Sales of the Hummer EV SUV and Pickup declined 72.9% in Q3 to just 1,423 units. In addition, Sierra EV sales declined 50.8% from 3,374 to just 1,661 units. Total sales across the GMC brand dropped 4.7% to 157,103.

In total, GM ended the third quarter having sold 670,974 vehicles, 5.5% fewer than the 710,347 it sold in Q3 2025. Through the first nine months of the year, total sales have fallen 6.4% to 2,012,299.

A handful of models did enjoy a jump in sales in the third quarter. For example, sales of the Buick Enclave, Encore GX, and Envista rose 3.4%, 5.4%, and 18.4%, respectively. In addition, Cadillac CT5 sales were up 4.1%, Chevrolet Colorado sales rose 2.4%, and Corvette sales were up 28.5%. Chevrolet also reported a 51.1% jump in Trailblazer sales. At GMC, Acadia sales rose 7.7%, Canyon sales were up 17.9%, Sierra LD sales climbed 2.9%, and Yukon sales jumped 8%.

Power windows have been around since the 1940s and are now standard on pretty much every new car, Slate Truck excepted. But this week GM was forced to recall nearly 30,000 Cadillacs because they’re replicating some dangerous habits of those early convenience features.

Though the first power windows used hydraulic power, by the 1950s automakers has switched to the electric lifts we now take for granted. But there’s one big difference between modern and classic power windows.

Related: GM Halts Vistiq Shipments Over 3rd-Row Seats That Can Trap A Child

It’s called anti-pinch, and is software designed to detect when there’s an obstruction in the window’s path. When the glass encounters extra resistance, the motor’s load increases, spiking the current and telling it to reverse direction.

Anti-pinch has been legal required on US cars for over 20 years, and it’s saved countless fingers, necks and who knows what else from being crushed in the years since. But on certain 2025-27 Cadillac Optiqs, anti-pinch might not turn up to save the day.

The problem relates specially to use of the express-up function on the electric SUV’s key fob. Press the fob button to roll up the windows and there’s a chance the glass might not stop and reverse if it comes across a hazard in the final 0.5 inches (13 mm) of window travel. This is obviously a worry for drivers with young children, but it’s also illegal, because it contravenes Federal Motor Vehicle Safety Standard 118.

GM Says Supplier At Fault

In the NHTSA recall notes GM places the blame squarely on supplier Kwangjin America, who its says set the upper travel range of the anti-pinch software incorrectly. The good news for squeamish readers is that the automaker has no reports of fingers being mangled due to the goof, at least not yet.

Quick Fix, No Wrenches Required

And the remedy is a simple one that doesn’t involve tearing the door down to replace hardware. A simple software update to the Optiq’s Body Control Module on 29,347 cars at a GM dealership should ensure your kids’ mini sausages are safe for years to come. And owners who have signed up for OTA (over-the-air updates) don’t even need to visit a service center.

This week’s recall isn’t the only example of Cadillac caring for Optiq owners’ fingers. GM’s poshest brand is rolling out new infotainment software for the Optiq, Lyriq, Vistiq and CT5-V that gives the screens bigger virtual buttons. The move is a response to customer feedback reporting that the existing touch targets were too easy for fingers to miss, especially on the move.

Cadillac

Buying your first electric vehicle can be intimidating and a little overwhelming. Besides the purchase itself, you need to think about recharging and possibly getting an electrician to come out to your home and install a charger.

Given that, it’s easy to see why a number of consumers forget to inquire about programs from their utility provider. GM is now streamlining things by announcing a new partnership with Pacific Gas and Electric [PG&E].

More: GM Wants Your Parked EV To Sell Power Back To The Grid, But There’s A $20,000 Catch

Dubbed the Smart Charge Bundle, the first-of-its-kind program “makes home charging part of the EV buying conversation from the start.” When at participating Cadillac, Chevrolet, or GMC dealerships, eligible customers can discuss their charging needs, explore charger options from GM Energy, and sign up for a program from PG&E.

While there’s a lot to take in, customers can get an Energy PowerShift or PowerUp 2 home charger at no cost. That’s a savings of up to $1,999, although installation, permitting, and any necessary electrical upgrades are the responsibility of the customer.

The PowerUp 2 charger typically costs $899 and is rated at 11.5 kW. However, the star of the show is the 19.2 kW PowerShift charger, which offers a bidirectional charging capability when paired with a V2H Enablement Kit. This allows your EV to act as a massive battery bank to power your home during outages.

While the free charger is certainly a bonus, the incentives don’t end there. Quite the opposite, as dealers can sign people up for PG&E’s EV Charge Manager program. According to the utility, it “schedules electric vehicle charging when electricity prices and demand are at their lowest.” You simply plug in your vehicle when you get home, and it will automatically begin charging at the proper time. It’s also worth noting you can override a “managed-charging session” whenever needed.

That’s oversimplifying things a bit, but customers could receive a $15 monthly bill credit. On top of that, owners could save up to $50 per month by charging when the electricity rate is low.

The incentive is available to eligible PG&E residential customers in Northern and Central California through February 2027, or until capacity in the program is reached. There are a few caveats – such as having to use GM Energy’s preferred installer network – but the Smart Charge Bundle sounds like a win-win.

GM Energy Vice President Wade Sheffer remarked, “GM Energy’s reason for being is to make EV ownership a leap forward in value and ease, from choosing the right vehicle to charging it at home. Our work with PG&E is the result of listening to owners, reducing steps, and doing the hard work in the background to make the customer experience really simple, with clear benefits.”

If you follow the stock market at all, you’re probably still kicking yourself for not dropping $10k into Sandisk last year. If you’d done that in April 2025 and cashed out 14 months later you’d have made almost $800k. It could be worse though: You could be GM and have invested billions in EVs only to discover everyone wants hybrids.

Rewind to the late 2010s and the whole car industry was going gaga for EVs, with multiple brands pledging to go electric-only by 2030 and most putting huge resources into battery-powered cars. Growing EV sales figures and tightening regulations really did make electric vehicles look like they would take over the world.

Related: Kia Sets All-Time August Sales Record As Hybrids Soar

Hybrids, meanwhile, which had kick-started the modern electric revolution in the late 1990s, were dismissed as an “interim solution” by GM boss Mary Barra in 2019, Reuters reminds us. But seven years later, American car sales say hybrids are the complete solution, not an interim one. And automakers who bet on gasoline-electric rather than electric power alone are winning big.

The biggest winner is Toyota. It’s crushing the competition, securing a 49.2 percent share in Q1 of the hybrid market, Cox Automotive says, per Reuters. That market has grown, too. Hybrids’ share of the total car market swelled from 16 percent in February to 19 percent in August on account of gas prices exploding following the start of war in Iran. And one analyst told Reuters he expects hybrids to hit a 34 percent share by 2031.

Stuck To Its Hybrid Guns

Toyota, you’ll remember, popularized the hybrid with the original Prius, and endured years of criticism for being slow to launch EVs. But it never wavered from its commitment to hybrids, and that determination is paying off in the US in 2026. While GM’s share of the US car market fell from 17.6 percent in the first half of 2025 to 16.8 percent in the same period this year, Toyota’s grew from 15.5 to 15.8 percent, according to Cox Automotive.

EVs also cut fuel costs, of course. And in Europe, which is suffering the same kind of gas pain American drivers are battling, EV sales are on fire. One in every four new cars sold there is an EV. But in the US, sales are heading in the opposite direction, partly as a result of the Trump administration killing federal EV tax credits. Their share of the US market fell from 14.4 percent in September 2025 to 7.1 percent this May.

The 19 MPG Hybrid

So if GM wants to get back in the game, it’s got no option but to deliver multiple new hybrid choices to support the straight gas vehicles it fortunately kept building. Incredibly, the General’s sole hybrids in the US today are three Corvettes, the $111k E-Ray, $119k Grand Sport X and $227k ZR1X, though in previous years it also sold hybrid sedans and SUVs. It also sells hybrids in China.

When will we see new GM hybrids with more than two seats in North America? Dealers won’t like the answer, because while the automaker won’t confirm dates or comment on speculation, Reuters industry sources say American showrooms could be hybrid-free zones until near the end of the decade.

GM, Toyota

Tesla remains far and away the biggest seller of electric cars in the United States, and despite rivals’ efforts, very little progress has been made in eroding the EV leader’s commanding market share.

July brought 77,266 new EV sales, up 3.2 percent from June and down 41.5 percent from the same month last year. Electric models made up 5.6 percent of all new-vehicle sales. The year-over-year drop has a simple explanation. In July 2025, the federal EV tax credit was still alive, and buyers rushed to cash it in before the Trump administration killed the incentive in September.

Read: Tesla Delivered More Cars Than Any Q2 Ever, And Its Stock Had The Worst Day Ever

Of last month’s electric cars, 42,435 were Teslas, according to Cox Automotive, good for 55 percent of the market. Tesla’s volume climbed 4.9 percent from June. The Model Y did the heavy lifting, as it always does, accounting for 37 percent of every new EV sold in the country. Basically, the nameplate outsold every rival automaker’s entire electric portfolio.

Tesla’s share throughout the entire second quarter was slightly lower at 50.5 percent, with the company selling a total of 124,800 EVs in the US during this period, down 13.1 percent from last year, when 143,535 were sold. In Q2, the brand with the next-largest slice of the EV pie was Chevrolet at 6 percent, followed by Hyundai at 5.8 percent, Cadillac at 4.9 percent, Toyota at 4.8 percent, and Rivian at 4.6 percent. Ford’s share remains a disappointing 3.9 percent, although its July sales were up 18.9 percent from June.

Hyundai posted the strongest month-over-month gain among the major brands in July, up 36 percent. Kia also moved higher, largely on the strength of the EV9.

Sales Surge Pinches Supply

As EV sales climbed in July, the average days’ supply of new EVs fell 6.2 percent month over month to 80 days, and 1.7 percent below where it sat a year earlier. Electric inventory now runs four days above ICE models, down from a nine-day gap in June. Volkswagen carried the heaviest load at 147 days, with Porsche at 138 and Nissan at 133. Subaru ran leanest at 46 days, then Hyundai at 52, and Lexus at 58. Used EVs moved the other way, rising 14.2 percent from June to 46 days, above ICE models for the first time since February 2026.

Used EV sales rose 7.9 percent month over month to 36,810 in July, 10.1 percent better than a year ago. Secondhand electrics took 2.4 percent of the market.

The Price Gap Hasn’t Closed

Electric cars remain the more expensive choice on both the new and used side. Average transaction prices for new EVs rose 1.2 percent in July to $56,126, against $49,649 for the average combustion model, and 1.6 percent higher than a year earlier. Incentives shrank over the same stretch, from 13.1 percent of ATP, or $7,290 per vehicle, in June to 11.8 percent, or roughly $6,626, in July. Used electrics average $37,832 against $34,865 for gas equivalents. Those prices slipped 1.2 percent from June but hold 8.3 percent above where they were a year ago.