After a promising start in the EV spotlight, the road ahead looks steeper for Lucid. Much like fellow American startup Rivian, Lucid is facing a difficult 2025, with financial pressures mounting after the $7,500 federal EV tax credit, which also helped lower lease payments, was scrapped.

The company behind the Air sedan and new Gravity SUV built 3,891 vehicles in the third quarter, falling short of projections and trailing the 5,621 average estimate from Bloomberg analysts. During the same period, it delivered a total of 4,078 vehicles, representing a significant jump from the 2,781 vehicles delivered in Q3 last year.

Read: Lucid CEO Reminds Everyone Tesla’s Model S Hasn’t Changed Since The Obama Era

Year-to-date, both production and delivery numbers are higher than in 2024. During the first nine months, Lucid produced 9,966 vehicles in the US and delivered 10,496. For context, the company delivered 10,241 vehicles across all of 2024, a 71 percent jump from 6,001 in 2023. While the momentum shows progress, it still trails what analysts had hoped to see.

Adding to that, Lucid confirmed it has built over 1,000 more vehicles awaiting final assembly at its facility in Saudi Arabia, an important piece of its long-term manufacturing strategy.

Leaving aside analyst forecasts, we’re talking under 10,000 cars in a span of nine months, a number that in no way is sustainable in the long term. For context, Tesla now sells that many vehicles roughly every four days in America, and even younger rivals like Rivian are comfortably outpacing Lucid’s output.

Shifting Gears With Gravity

While the latest numbers suggest growth, it’s also worth noting that Lucid is no longer a single-model company. The Gravity SUV has officially begun reaching customers, marking a key step in broadening its lineup. However, the company hasn’t disclosed how many units of the Air and Gravity were included in its third-quarter deliveries.

Even so, Lucid expects the Gravity to take the sales lead through the remainder of the year, potentially becoming the brand’s volume driver.

The next chapter for Lucid could prove even more critical. A mid-size electric SUV is set for unveiling next year, positioned to enter the market at under $50,000. The model could finally give Lucid a foothold in the more accessible end of the EV market, where volume growth matters most.

Provided the company secures the necessary funding, production of this new SUV will take place at Lucid’s Saudi Arabian facility.

Rivals for decades, BMW and Mercedes largely fish in the same pool. But while one of the big German brands saw its catch rate tumble, the other is soon going to need a bigger boat, judging by sales figures released this week.

Mercedes shifted 441,500 cars in Q3 (plus 83,800 vans), a drop of 12 percent on the same quarter in 2024, while BMW moved 514,620 BMW-branded vehicles, representing a rise of 5.7 percent. Factor in the BMW Group’s other brands, including Rolls Royce, BMW M and Mini, and total sales hit 588,300, or 8.8 percent more than in Jul-Sep last year.

Related: BMW Somehow Sold Fewer Electrified Cars Than Last Year

What’s really interesting is how differently the two brands performed in certain key markets. In the US for instance, which has been impacted by tariffs this year, it’s probably not a surprise to see that Mercedes sales dropped 17 percent to 70,800 units.

But turning that logic on its head, BMW actually grew its US sales by a whopping 24.9 percent in the same period to 297,247.

And even in China, where both brands – like many Western automakers – are having a tough time, Mercedes fared much worse. Benz sales sank by a shocking 27 percent but BMW escaped with an 11 percent drop. Still terrible, but much less so.

BMW vs Mercedes Sales Q3

The electric (and electrified) numbers deepen the divide. For Mercedes, battery-electric vehicle (BEV) deliveries flatlined. The company delivered 42,600 BEVs in Q3, essentially holding steady year-on-year as it battles cost pressures, tariff headwinds, and intensifying EV competition in China.

BMW’s story is more complicated. The BMW Group’s electrified portfolio (including BEV + PHEV) showed healthy growth overall, as it moved 151,282 electrified units in Q3, up 8 percent. But they were down 2.8 percent in the US. Full EV sales in that same period fell by 0.6 percent to 102,864 units globally, though they’re up 10 percent YTD.

Both automakers have some crucial new products coming through including the GLC with EQ Technology and iX3, so it’ll be fascinating to see how those cars impact next year’s numbers.

BMW vs Mercedes sales by region

BMW sales split

EV sales are on the rise in the UK, thanks in part to surging demand for vehicles from Chinese manufacturers such as BYD. Plug-in hybrids and traditional hybrids have also enjoyed strong growth, pushing total electrified vehicle sales beyond the combined total of petrol and diesel cars last month.

Read: EVs Poised To Exceed Half Of Europe’s New Car Sales Sooner Than Expected

In September, 72,779 new battery-electric vehicles were registered nationwide, marking a 29.1 percent jump from the 56,387 sold during the same month last year.

The pace hasn’t slowed over the course of the year either. So far, 349,414 BEVs have been sold, up 29.4 percent year-on-year. That now gives electric models a commanding 22.1 percent share of the UK’s new car market, a sharp climb from 17.8 percent a year ago.

Hybrid Uplift

The demand for plug-in hybrids has increased significantly. In September, PHEV deliveries increased by 56.4 percent to 38,308 units, and year-to-date, sales have reached 172,639, resulting in a 10.9 percent market share.

Regular hybrid models have followed suit, with sales rising 23.5 percent in September and 8.6 percent across the year to 222,669 units in total. The steady growth across all electrified categories shows that buyers are increasingly open to alternative powertrains, even if they’re not ready to go fully electric just yet.

While the electric tide rises, traditional fuels are losing ground. From January through September, petrol vehicle sales slipped 8.2 percent to 749,794, and diesel fared worse, down 14.3 percent to just 83,656.

China’s Growing Footprint

A major contributor to the electrified upswing has been BYD, whose presence in the UK has expanded dramatically. In September alone, the brand sold 11,271 cars, representing an eye-catching 880 percent increase compared with the same month last year.

Over the first nine months of 2025, BYD has sold 35,000 vehicles in the UK, capturing a 2.2 percent share of the market. That performance makes the UK its largest single market outside China.

To put BYD’s results for this year into perspective, it sold just 5,260 vehicles in the UK in the first three quarters of 2024.

MG, another Chinese brand with established roots in the UK, also enjoyed strong results. September sales jumped 62.71 percent to 14,577 units, while year-to-date growth sits at 4.11 percent, totaling 65,394 vehicles.

Other new Chinese entrants, including Changan, Chery, Jaecoo, Leapmotor, and Omoda, have also seen their sales increase, reflecting the growing influence of Chinese automakers across the UK market.

As for Tesla, its sales remained steady, rising 4.4 percent in September to 7,993 cars compared with 7,656 in the same month last year. Year-to-date, though, sales have dipped 3.4 percent to 36,160 units.

Electric cars have become a central part of Volkswagen’s global strategy, with a wide mix of models sold across Europe, Asia, and beyond. In the States, though, the lineup is far narrower, limited to just the ID.4 and the ID.Buzz. Even so, the ID.4 has taken on a critical role for the brand, climbing to Volkswagen’s third best-selling model in the country during the third quarter of this year.

Read: VW ID.4 Gets A Stealthy Blackout But Something Bigger Waits In The Shadows

In the third quarter, VW managed to sell a total of 87,705 vehicles in the US, consisting of 73,444 SUVs and 87,705 passenger cars. The company’s most popular model proved to be the Tiguan LWB, shifting 22,050 units, a 4 percent increase from Q3 last year. In second place was the Atlas, with 19,105 examples finding new homes, marking a 2 percent increase.

A Sharp Rise For The ID.4

Slotting into third place was the all-electric ID.4. Q3 sales hit 12,470, a dramatic 176 percent jump over the 4,518 sold in the same period last year. That single quarter accounted for a sizeable portion of the 22,125 ID.4s delivered nationwide so far in 2025.

Needless to say, the surge didn’t happen by chance. Like several other automakers, Volkswagen benefited from a rush of customers eager to secure their EV purchase before the federal EV tax credit expired on September 30.

Although the 2025 ID.4 did not qualify for the incentive, unlike the 2023 and 2024 models, it was available with the $7,500 rebate if leased. Now that the government’s incentive is no longer available, it’s likely there will be a decline in demand through the remaining three months of the year.

Where The Numbers Land

Looking at the year as a whole, the ID.4 ranks as VW’s sixth best-selling new vehicle in the States with 22,125 units sold. This positions it behind the Atlas (51,181), the Tiguan LWB (48,951), the Jetta (48,610), the Taos (40,524), and the Atlas Cross Sport (24,282).

In Q3, VW also managed to sell 2,469 ID.Buzzes, roughly 50 percent of all the examples it has sold through the entire year through September.

Correction: An earlier version of this story mistakenly referred to third-quarter sales as September sales.

VW US Sales 2025

Rivian has once again trimmed its delivery outlook for the year, now projecting it will finish 2025 with between 41,500 and 43,500 vehicles handed over to customers. Earlier forecasts had painted a more optimistic picture. In May, Rivian suggested it would finish 2025 with between 40,000 and 46,000 deliveries, which was itself a downward revision from an even earlier target of roughly 51,000 vehicles.

Read: Rivian Offers Owners Cash To Sign Away Their Legal Rights

To put these figures into perspective, Rivian sold a total of 50,100 vehicles in 2023 and 51,579 in 2024. While the electric car manufacturer would have inevitably hoped to see sales continue to grow throughout 2025, that hasn’t been the case.

Mixed Numbers

The revision arrives even after Rivian recorded its best sales quarter of the year. Still, the annual forecast hints that appetite for the R1T pickup and R1S SUV may be tapering off, a concern that pushed the company’s stock down nearly 10 percent.

During the past quarter, Rivian delivered a total of 13,201 vehicles and produced 10,720 at its facility in Normal, Illinois. That’s an increase of nearly 32 percent in third-quarter (Q3) deliveries, a surge driven in part by U.S. buyers hurrying to lock in tax credits, even through leasing, before they expired on Tuesday.

Rivian’s Big Hope

Rivian’s long-awaited mid-size R2 cannot come soon enough. It’s been in the works for a couple of years now and is scheduled to launch in the first half of 2026. It will initially be built at an expanded line at the company’s plant in Normal, Illinois, before moving to Rivian’s forthcoming multi-billion-dollar facility in Georgia.

During a recent interview with InsideEVs, Rivian Chief Executive RJ Scaringe noted that while a large car manufacturer like Chevrolet or Volkswagen could absorb the costs of a new model that does not prove popular upon launch, Rivian does not have the same luxury.

“For a big company that has lots of other products, you can absorb that not going well, and the business will be fine,” he said. “For a Rivian, it must go well.” Prices for the R2 will start at approximately $45,000, significantly undercutting the R1-series models that start at over $70,000.

Audi sells no fewer than 18 different models in the United States, and among them, it was an unexpected contender that claimed the sales crown through the third quarter. Outpacing long-time favorites like the Q5 and Q3, the spotlight landed on the electric Q6 e-tron.

However, that an EV managed to outpace Audi’s long-standing ICE models says less about sudden enthusiasm for electrification and more about the terrible year its combustion lineup has faced that was compounded by buyers rushing to make the most of federal EV incentives before they vanished.

Numbers Behind the Surge

Over the past three months, Audi sold 10,059 Q6 e-trons across the US. This represents a 22,761 percent increase over the third quarter of last year, although that’s somewhat irrelevant, as deliveries hadn’t started in earnest in 2024. Year-to-date, a total of 17,021 Q6 e-trons have been sold.

Read: Audi’s Electrifying Crossover Coupe Arrives With A 509 HP Range-Topper

The reason for the surge in demand is quite simple. The $7,500 federal EV tax credit is no longer available, leading to a rush of shoppers who wanted to benefit from it before it was discontinued. Interestingly, the Q6 e-tron wasn’t eligible for the tax credit when purchased upfront, but customers could receive it when leasing. While Audi hasn’t disclosed how many of the Q6 e-trons it sold in the third quarter were leased, we suspect most of them fell in that category.

With sales of the electric SUV climbing into five figures, the Q6 e-tron edged past the Q5, Audi’s traditional sales leader. In the third quarter, the compact SUV recorded 9,719 units, bringing its year-to-date total to 32,633. It still holds the top spot overall, but that position comes with a caveat: sales are down 17 percent compared with 2024. Looking at just the third quarter, the drop was even sharper, falling 34 percent from the 14,677 sold in the same period last year.

The Q3 was next in line during July through September, logging 5,597 units, a huge 25 percent dip year-over-year. Behind it came the Q7 with 4,281 sold, which marked a steep 24 percent decline compared with the same period in 2024. Even so, its year-to-date tally of 14,256 is actually 5 percent higher than last year’s, showing that while the third quarter dragged, the bigger picture looks better.

The electric Q4 e-tron also carved out its own space in the lineup. Sales rose 32 percent in the third quarter to 2,956 units, although its year-to-date total of 5,194 remains slightly behind last year’s pace.

Sales of virtually all other Audi models fell last quarter. These included the A5 (-34 percent), A6 (-41 percent), A7 (-2 percent), and Q8 (-22 percent). Demand also fell for some of Audi’s EVs, including the e-tron GT (-3 percent), Q8 e-tron (-98 percent), and the Q8 Sportback e-tron (-96 percent).

The Bigger Picture

Looking at the totals, Audi sold 46,758 vehicles in the third quarter, practically as many as it delivered a year earlier (46,752). Year-to-date, the brand has moved 128,709 cars and SUVs in the US, which is 8 percent fewer than in 2024.

Audi US Sales 2025

Additional reporting by John Halas

Tesla’s been having a terrible year, but there’s a bit of good news as third quarter deliveries climbed 7.4% from last year. That’s a sizable increase and it’s believed the recently expired clean vehicle tax credit played a significant role in driving consumers to showrooms.

Jumping right into the numbers, Tesla delivered 481,166 Model 3 and Model Y vehicles in the third quarter. That’s up from 439,975 last year, for an increase of 9.4%.

More: Tesla’s EV Market Share Just Sank Below 40%

However, it wasn’t all roses as the Model S, Model X, and Cybertruck continue to underperform. Q3 deliveries dropped from 22,915 units last year to 15,933 vehicles this time around.

In total, Tesla produced 447,450 vehicles and delivered 497,099. One year ago, the company made 469,796 EVs and only delivered 462,890.

2025 Q3 Tesla Production And Deliveries

Digging deeper, Tesla sales have rebounded significantly since Elon Musk’s disastrous foray into politics turned off a number of consumers. Compared to last quarter, deliveries soared an impressive 29.4%. The biggest boost came from the Model 3 and Y, which were up by 107,438 units. Deliveries of “other models” also grew by 53.3% as the company handed over 15,933 of them.

Of course, the sales bonanza is likely over now that the tax credit is dead. This means customers will need to shell out at least $42,490 for a Model 3 or $44,990 for the Model Y. Those prices will likely limit their appeal, although the company is working to address that with a cheaper Model Y.

They’re not the only ones working on more affordable EVs as Hyundai recently slashed prices for the 2026 Ioniq 5. The crossover starts at $35,000, which is $7,600 less than last year’s model. Other trims have steeper reductions and they average $9,155.

Hyundai sales surged to record heights in the US last month, thanks in part to a significant increase in demand for its EVs and a few of its SUV and sedan models. And, despite the removal of the federal EV tax credit at the end of September, the Korean carmaker appears confident it can keep the momentum going through the rest of the year and into 2026.

Read: The EV Price War Just Got Real And Hyundai Fired First

In September, Hyundai sold a total of 71,003 vehicles in the US market, a 14 percent increase over the 62,491 sold the same month last year. In addition, Hyundai’s Q3 sales were up 11 percent to 678,349 units compared to the 610,494 sold through the first three quarters of 2024.

EVs Leading the Charge

Several models contributed to the surge in demand last month. The all-electric Ioniq 5 stood out, with sales soaring 152 percent from 3,336 units to 8,408. While many automakers saw a final bump in EV sales before the federal tax credit expired, Hyundai has moved quickly to soften the impact.

The company is now offering a $7,500 cash incentive on 2025 models, along with price cuts of up to $9,800 on 2026 Ioniq 5s. Year-to-date, sales of the Ioniq 5 have climbed 36 percent, from 30,318 units to 41,091.

Hyundai US Sales 2025

Elsewhere, sales of the Ioniq 6 have jumped 36 percent, although it remains a small blip in terms of Hyundai’s overall sales, with just 814 sold in September and 9,132 sold this year. The large, three-row Ioniq 9 sold 4,177 examples.

Demand for the small Venue also soared by 77 percent last month, with 2,836 finding new homes across the country. Hyundai reported a 28 percent rise in Santa Fe sales to 10,114 units. In September, sales of the Elantra increased by 23 percent.

There are some outliers in what has been a very good year for Hyundai. For example, year-to-date sales of the Sonata are down 5 percent to 45,914, Santa Cruz has fallen 18 percent to 20,633, and the Kona is down 11 percent to 57,278.

The end of the federal EV tax credit has left the industry on edge, and Ford’s top executive is warning of serious consequences. Without the $7,500 incentive, Jim Farley believes demand for electric vehicles in the United States could collapse, with sales potentially dropping by half. It’s a sobering reminder of how much the credit has shaped America’s shift toward electrification.

Read: Jim Farley – “If We Lose This, We Do Not Have A Future Ford”

Speaking at the automaker’s  “Ford Pro Accelerate” event in Detroit, Farley said EVs might soon represent only 5 percent of the overall US car market, a level last seen in 2022 and well below the record 10 to 12 percent share expected this month. That projection paints a far more modest future for electric adoption than many in the industry had anticipated.

A Shrinking Market?

“I think it’s going to be a vibrant industry, but it’s going to be smaller, way smaller than we thought, especially with the policy change in the tailpipe emissions, plus the $7,500 consumer incentive going away,” Farley said. “We’re going to find out in a month. I wouldn’t be surprised that the EV sales in the U.S. go down to 5%.”

According to Farley, Ford’s Model e team is continually analyzing the demand for electrified vehicles. The car manufacturer will also have to change plans and decide how it should make use of excess EV capacity and its battery factories.

Adjusting To New Rules

“We’ll fill them, but it will be more stress, because we had a four-year predictable policy,” Farley noted. “Now the policy changed. … We all have to make adjustments, and it’s going to be good for the country, I believe, but it will be one more stress.”

During the same event, Farley also acknowledged that Ford’s customers are not interested in an expensive electric car. As such, the carmaker will need to make cheaper EVs, but now that the tax credit is gone, doing so will be much more difficult than before.

“Customers are not interested in the $75,000 electric vehicle,” the Ford CEO said. “They find them interesting. They’re fast, they’re efficient, you don’t go to the gas station, but they’re expensive.”

Car buyers might be feeling the pinch of limited supply, but Honda’s sales figures show that demand for its lineup remains strong. Together with Acura, the group moved 105,097 vehicles in September, despite tighter inventories across popular models. The real standout was the Passport, which is having its best year ever. On the flip side, Acura’s ZDX, which was recently discontinued after just a single year on the market, struggled.

More: Should The Next Honda Ridgeline Look Like The New Passport?

Total Honda sales reached 95,391 for the month, which is virtually unchanged from last September at just 0.3 percent lower. Looking at the bigger picture, year-to-date deliveries are up 4.1 percent. Passport demand has been a major driver, with sales up 75.5 percent for the year and a striking 108.8 percent for September alone. Nearly 80 percent of buyers are choosing the rugged TrailSport trim, suggesting that Honda’s more adventurous positioning has struck a chord.

SUV Strength

The CR-V continued its domination with over 28,000 sales in September, more than half of which were hybrids, while the Pilot and HR-V chipped in another 20,000 sales combined. On the passenger car side, Honda sold almost 30,000 sedans and coupes in September.

Accord and Civic hybrids made up 47 percent and 36 percent respectively. Electrified models in general set a new monthly record (32,387), thanks in part to the rollout of the Prologue EV.

Acura’s Mixed Bag

Acura, meanwhile, moved 9,706 vehicles in the ninth month of the year. That’s actually a drop in sales year over year of 2.2 percent. The Integra held firm at sales of over 1,500 units. The MDX and RDX combined for over 4,800 deliveries, and the ADX is, according to the brand, “capturing a segment-leading nearly 30% of retail sales”.

On the downside, the ZDX continues to be the white elephant in the lineup, experiencing a 61.3 percent drop in September sales year over year. While that might sound excessive, in cold hard units, that’s a drop from 979 units in 2024 to just 395 this year.

Since the start of the year, Acura has delivered only 11,915 examples. To put that into perspective, Honda has already sold more than three times as many Prologues in the same period. With numbers that lopsided, it is not surprising production of the ZDX has already been cut short.

Ford just posted its seventh straight month of growth and capped off a successful third quarter. It wasn’t just one or two models that did the heavy lifting, either. Not only were traditional ICE vehicles like Bronco, Explorer, and Expedition big hits, but electrified cars, trucks, and SUVs smashed records. Here’s a look at the details.

More: Ford Sold More Than Twice As Many Electric Mustangs As Gas Ones

During the quarter, Ford and Lincoln sold a combined 85,789 electrified vehicles, which include both hybrid and pure battery-electric vehicles (BEV). That’s up 19.8 percent compared to last year, and it made up 15.7 percent of the brand’s sales mix. Last quarter, electrified cars made up just 13.5 percent of sales.

No doubt, some, well, scratch that, most of those sales came from buyers eager to grab a tax credit before it expired on September 30. Ford and GM, however, seem to have found a loophole to keep it alive a little longer, as we reported yesterday.

Battery Gains Build Momentum

That’s backed up in part by the huge gains Ford saw in its BEV sales. It delivered 30,612 EVs in the quarter. That’s a 30.2 percent increase over the same time period in 2024. Leading the way was the Mustang Mach-E, which recorded its best quarter since launching in 2020, climbing 50.7 percent to 20,177 units. The F-150 Lightning also posted a record quarter with 10,005 trucks sold. That’s up almost 40 percent.

Hybrids still make up the majority of Ford’s electrified sales. They accounted for 55,177 sales. The F-150 Hybrid continued its reign as the best-selling full-size hybrid truck in America with 22,212 sales. The Maverick Hybrid continued to dominate the midsize hybrid pickup segment with 63,516 sales, an 11.5 percent increase.

Andrew Frick, president of Ford Blue and Model e, said the results highlight the company’s balance across powertrains. “We saw strong performance in gas, hybrid, and electrified powertrains, while at the same time growing our paid software solutions, all embedded in vehicles such as Expedition, Explorer, and F-150.”

Balancing Old and New

While some big automakers are pivoting around a shifting market, Ford seems on track to move from strength to strength. It’ll likely outsell GM and Stellantis combined with regard to electrified sales this year. And it’s managing that while ICE-powered vehicles see success as well.

Sales momentum keeps building for Toyota, with last month’s modest increase adding to what has already been a strong run through the first eight months of the year. At the current pace, Toyota looks set to surpass the 10.8 million vehicles it sold globally in 2024.

But a closer look at the company’s latest report uncovers some striking details, or anomalies if you will, including the fact that only 18 battery-electric vehicles were sold in its home market of Japan during August.

Read: Toyota Finally Blinks As Europe’s EV Market Closes In

The good news for Toyota is that this year, the company has sold 7,409,273 vehicles across the Toyota, Daihatsu, Hino, and Lexus brands. This represents a 6.2 percent increase over last year. That said, August growth slowed to 900,598 units, down 1.3 percent year on year. More concerning was the drop at home, where Toyota’s group sales in Japan fell 10.2 percent in August despite being up 17.8 percent across the year so far.

Excluding Daihatsu and Hino, Toyota and Lexus deliveries in Japan dropped 12.1 percent last month to 96,269 units. The slowdown has been linked to operational setbacks and delayed deliveries connected with issues in the Kamchatka Peninsula, alongside lingering fallout from a wide-ranging Prius recall last year.

Toyota’s BEV Sales

The report also highlights how Toyota and Lexus are faring with electrified models. Globally, year-to-date EV sales climbed 20.6 percent to 117,031 units. Yet in Japan, the story is very different. Sales of battery-electric vehicles collapsed by 84.9 percent in August, amounting to only 18 units. Over the first eight months, the total was just 469 BEVs in Toyota’s home market, down 71.1 percent.

This decline comes despite overall electrified vehicles in Japan rising 8.8 percent this year to 617,947 units. The vast majority of these are Toyota’s traditional hybrid models, accounting for 603,676 sales. It has then sold 13,551 plug-in hybrids in Japan this year and 251 hydrogen fuel-cell models.

Growth Abroad

Outside Japan, Toyota’s EV business is heading in the opposite direction. Global demand has strengthened, with 117,031 EVs sold this year, a solid 20.6 percent increase. August proved especially strong, with 17,056 units delivered, marking a 34.5 percent rise compared with the same month last year.

The economy continues to show signs of turbulence as inflation is up and the unemployment rate climbed to 4.3% last month. These factors helped to push the Federal Reserve to lower interest rates.

While the Fed noted “uncertainty about the economic outlook remains elevated,” that hasn’t scared off car buyers. Quite the opposite as Edmunds expects this will be the strongest third quarter for new vehicle sales since 2019.

More: Americans Crushed By Auto Loans As Defaults And Repossessions Surge

If their projections pan out, Americans will have snapped up 4,075,132 new vehicles between July and September. That would be a 4.7% increase from last year, but a 3.3% drop from the second quarter.

An EV Slowdown Ahead?

That sounds like a mixed bag, so what’s driving the sales? Edmunds pointed to a number of factors including the elimination of the clean vehicle tax credit. It expires tomorrow, meaning shoppers have rushed out to buy EVs before the $7,500 incentive disappears.

That isn’t the only tailwind as the rate cut appears to have helped and Jessica Caldwell, Edmunds’ head of insights, noted “We’re seeing more consumers return to the market with aging trade-ins, which is a strong signal that there’s still real pent-up demand.”

However, the party is going to come to an abrupt end once the clean vehicle tax credit expires. Edmunds’ director of insights, Ivan Drury, suggests there will be an “EV hangover in the months ahead.” That’s an understatement as the elimination of the incentive will likely push some consumers to cheaper gas and hybrid vehicles.

Automakers have already alluded to this and GM’s Duncan Aldred recently said, “There’s no doubt we’ll see lower EV sales next quarter … and it may take several months for the market to normalize.” He added, we will “almost certainly see a smaller EV market” and the company will respond by cutting production.

Who Gains, Who Slips

We’ll learn the real numbers soon enough, but Edmunds is expecting Toyota to benefit from a 17% increase in third quarter sales compared to a year ago. Hyundai and Kia are expected to climb 12.7%, while Ford could be up 8.0%.

Not everyone is expected to climb, though. Stellantis may see a marginal dip of 0.3%, making it the only major automaker in Edmunds’ forecast with a year-over-year decline.

SALES VOLUME FORECAST

Edmunds

This week marks the end of the federal EV tax credit. The shift is expected to ripple through buyers’ wallets and dealership balance sheets alike. Yet for many dealers, the financial squeeze started weeks earlier, thanks to delays in the IRS’s approval process that have slowed reimbursements, leading some to go as far as holding cars until the money came through.

Read: Dealers’ Paperwork Errors Are Costing Buyers Their EV Tax Credits With The IRS

The vast majority of used and new EV buyers who are eligible for the credit receive it as an upfront rebate at the point of sale. Typically, car dealerships themselves hand over this money after receiving online approval from the IRS. It’s then the IRS’s job to repay dealers.

Bottleneck in the System

Speaking with CNBC, several dealers say that before this month, this process usually only took a few days. Now, many dealers have been left in the lurch for upwards of two weeks and haven’t been paid back by the IRS. For dealers selling dozens of EVs with the tax credit, this quickly adds up.

According to the founder of Green Wave Electric Vehicles in New Hampshire, Jesse Lore, the dealer is out about $100,000 after paying the credit at the point of sale, but has not yet been reimbursed by the IRS. Lore added that roughly a dozen applications submitted to the IRS since September 15 were still listed as pending.

“I know for a fact there are dealers saying, ‘We’re not doing it anymore. We’re not getting paid,” Lore told CNBC. “Others are saying [to consumers], ‘We’re holding the cars, and you can’t drive the car home until we get paid in full.’”

The co-owner of AutoTurst USA in Florida, Gary Pretzfeld, added that he has paid out between $80,000 and $90,000 in rebates and is still waiting to be paid by the IRS. A spokesperson for the National Automobile Dealers Association said it is aware of the delays.

“Anecdotally, we have heard some dealers report that recent submissions have been placed in pending status since last week,” the spokesperson said. “NADA has been and continues to work with the IRS and the Department of Treasury regarding the portal and they have been cooperative.”

Unanswered Questions

What’s causing the slowdown remains unclear. Some dealers chalk it up to the IRS drowning in paperwork, citing thinner staffing and a surge in EV sales. Others, however, lean toward a more conspiratorial view, suspecting the slowdown might be a deliberate tactic by the Trump administration to put a dent in EV sales.

An official from the White House says that all valid EV tax credits that are applied for before the September 30 end date will be granted and paid. But, until this happens, many dealers will be living with some serious anxiety.

Overseas buyers of Chinese electric cars may soon see tighter oversight of how these vehicles reach foreign markets. On Friday, Beijing confirmed it will introduce export controls on pure electric passenger cars, a move said to be driven by concerns at home over intense price competition and by global complaints abroad about a surge of cheap cars.

The government also wants stricter rules to guarantee proper after-sales support, meaning exporters will face greater scrutiny in the coming months and years.

The new licensing rules are scheduled to begin on January 1, 2026. From that date, the Commerce Ministry has confirmed that automakers and other authorized companies will need to apply for export licenses, much like the system already in place for hybrid and combustion-powered vehicles built in China and sold abroad. Officials are said to have grown increasingly frustrated with unauthorized exports sending cars overseas without the necessary after-sales support.

Read: Locked Out Of The US, Chinese Carmakers Are Taking Over The Middle East, Latin America, Africa And Asia

As reported by CBT News, poor service and missing support networks can leave customers stranded and undermine a brand’s reputation. The situation has also intensified price battles in several foreign markets, creating instability for local manufacturers.

According to the director of policy research at the China Automotive Technology Research Center Wu Songquan, it’s important for Chinese car brands to follow the lead of legacy carmakers and to standardize export processes and boost quality. It’s hoped this will build more long-term trust in vehicles exported from China elsewhere.

Exporting Powerhouse

The timing of these new measures is no accident. The move comes shortly after China officially established itself as the world’s largest car exporter, even surpassing Japan. And its growth shows no signs of stopping, as noted by the South China Morning Post.

The secretary general of the China Passenger Car Association, Cui Dongshu, believes that within five years the country could be exporting as many as 10 million vehicles to overseas markets annually. In China itself, local brands could be selling 30 million vehicles per year thanks to the nation’s huge population.

Massive Room To Grow

“There is still vast potential for market expansion in China’s less developed regions, such as mid-western districts and rural areas, where car ownership levels could gradually surpass those in metropolises like Beijing and Shanghai,” Cui noted.

For perspective, China currently has about one car per 1,000 people, a figure that underscores just how much space remains for growth. The contrast is stark when compared with Europe, where in 2020 there were 641 vehicles per 1,000 people, or the United States, where the number has been as high as 860.

Overall car sales in Europe grew by 5 percent to 790,000 last month, buoyed by continuing enthusiasm for electric cars across the continent. Plug-in hybrids saw particularly strong momentum, with registrations climbing to 83,900 in August, a 59 percent increase on the previous year that lifted their market share to 10.6 percent.

Related: Global Electric Car Sales Jumped 25 Percent While Canada Dropped By A Third

According to Jato Dynamics figures, battery-electric cars (BEVs) also posted gains, up 27 percent compared with August 2024, giving them a record 20.2 percent market share, up 3.6 percentage points year on year. That brings Europe’s total for fully electric registrations in 2025 to 1.54 million so far. Analysts caution, however, that the headline growth figures for BEVs may not tell the full story

Numbers With Caveats

“The data shows that there was strong demand for BEVs in August, however a 27 percent increase is less significant than it looks when you consider how widely they are being promoted across Europe,” said Felipe Munoz, Global Analyst at JATO Dynamics. “The new record market share for BEVs achieved last month has been partly distorted by the fact that Italy – typically a less enthusiastic adopter of BEVs – is usually quiet during August,” Munoz added.

Europe Car Sales

Jato Dynamics

China’s Growing Momentum

Yet Europe’s traditional manufacturers may find little comfort in these results. The bad news for Europe’s carmakers is that interest in Chinese brands is growing at an even faster rate, and it’s coming at the expense of some very big household names.

Audi shifted 41,300 units in August, and Renault moved 37,800. Both are major players in the market but were outmaneuvered by Chinese brands who registered 43,500 sales, up a massive 121 percent versus August 2024, Jato reports.

Granted, that ‘Chinese brands’ figure is made up of 40 different automakers, but Jato points out that 84 percent of the total was achieved by only five of them, namely MG, BYD, Jaecoo, Omoda and Leapmotor. Whichever way you cut it it’s bad news for Europe’s legacy brands, and is only going to get worse, though at least Stellantis’s deal with Leapmotor means it gets to celebrate the win.

Even on their own, the Chinese brands took some big scalps. MG registered more cars than Tesla and Fiat, BYD beat Suzuki and Jeep, and Jaecoo and Omoda outsold Alfa Romeo and Mitsubishi.

“European consumers are responding positively to the growing, competitive line-up from China’s car brands,” Jato analyst Felipe Munoz said. “It appears that these brands have successfully tackled the perception and awareness issues they have experienced.”

Hybrids, not just EVs

It’s not only in the EV segment that Chinese brands are making gains. They’re also doing great in the PHEV space, where they’re not hobbled by the same tariffs applied to their fully electric vehicles.

More than 11,000 Chinese-brand plug-ins were sold this August compared with only 779 in the same month last year, BYD is now the eighth most popular PHEV brand overall and the BYD Seal U, Jaecoo J7 and MG HS bagged three spots in the top 10 best-selling models list.

However, if you simply looked at the table of 10 most-registered models, you’d never guess how quickly China was moving forward. The list contains no names from the People’s Republic and continues to be dominated by Volkswagen and Renault.

The VW T-Roc (which has since been facelifted) was the region’s biggest seller, with the Dacia Sandero scooping second spot and Toyota’s Yaris Cross bagging third. Tesla’s updated Model Y was the best-selling EV, but its sales were down 37 percent and it was nowhere to be seen in the overall top 10 cars table.

The automotive industry’s transition to electrification has been a lot rockier than many had predicted due to shifting customer preferences, ever-changing regulatory hurdles, and market-specific demands, forcing carmakers to respond. While the growth in sales of electrified vehicles has slowed somewhat, new data reveals they continue to gain popularity, accounting for a larger slice of the overall market.

Through the first eight months of this year, an estimated 12.5 million battery-electric vehicles and plug-in hybrid vehicles have found homes around the world. This represents a significant 25 percent spike over the year prior and has been led by surging demand in most important markets. However, North America is lagging behind.

A Continent Out Of Step

Read: The World Is Racing Toward EVs While America Barely Leaves The Driveway

According to data from Rho Motion, this year a total of 1.3 million BEVs and PHEVs have been sold in North America, which is just a 6 percent increase from last year. By comparison, sales in Europe are up 31 percent, those in China have increased 25 percent, and sales across the rest of the world have jumped 44 percent to roughly 1 million units.

Canada is dragging the rest of North America down. After the iZEV rebate was paused earlier in the year, Canadian BEV and PHEV sales have fallen one-third year-to-date. By comparison, sales are up in the United States and experienced a particular surge in August due to the impending end of the federal EV tax credit on September 30.

Slowing Momentum

In August alone, global sales of BEVs and PHEVs increased by 15 percent from the year prior, but this rate was the lowest jump since January. In total, 1.7 million BEV and PHEVs were sold in August, representing a 5 percent jump from July.

China, the world’s largest EV market, illustrates the slowdown. Sales still climbed 6 percent compared with August 2024, but the rise fell short of expectations. Last year’s numbers were inflated by unusual surges in July and August, when China broadened its trade-in scheme for new energy vehicles, making this year’s performance look softer by comparison.

Lead image: Stefan Baldauf & Guido ten Brink

Update: Stellantis has clarified that CEO Antonio Filosa’s remarks were focused on Leapmotor’s sales performance in Germany in August and not the entire year. He was specifically referring to the Leapmotor T03, which ranked as the country’s best-selling Chinese electric vehicle that month, while Leapmotor overall claimed the top spot as Germany’s best-selling Chinese battery-electric brand, again for August.

“Antonio Filosa’s statement about Leapmotor’s sales of battery electric vehicle (BEV) in Germany in the month of August 2025 are accurate and confirmed by the national industry’s database (KBA),” the Stellantis spokesperson told us.

“In August 2025, in Germany, Leapmotor was the best-selling Chinese BEV brand and Leapmotor T03 was the best-selling Chinese BEV” he explained. The spokesperson also added,, “All other assessments from the competition cannot be linked to what was stated yesterday by our CEO”.

Original story continues below.

It seems a brewing rivalry has spilled into the press. Chinese automaker BYD has pushed back against comments attributed to Stellantis CEO Antonio Filosa, reportedly made on Thursday in reference to Leapmotor, though the original source of his remarks is still unclear. We’ve reached out to both sides for clarification.

A Question of Interpretation

According to BYD, Filosa was quoted as saying that “in Germany Leapmotor sold more than BYD.” While Stellantis does not own Leapmotor outright, it holds a minority stake and controls exports outside China through Leapmotor International, a joint venture in which Stellantis has a 51 percent share.

The Chinese automaker disputes the claim, citing its own sales data that show it still has a clear lead. Along the way, BYD also couldn’t resist pointing out how its numbers stack up against Stellantis’ own brands.

According to BYD, they sold 8,610 vehicles in Germany between January and August 2025, which is a far cry from the 3,536 sales of Leapmotor over the same period. These numbers can be broken down to 5,852 BEVs and 2,757 PHEVs for BYD, versus 3,088 BEVs and 448 PHEVs for Leapmotor.

More: Europe’s EV Buyers Are Dumping Tesla And China Couldn’t Be Happier=

We checked the official registration data from Germany’s Federal Motor Transport Authority (KBA), which confirm a similar picture. Between January and August 2025, BYD recorded 8,563 new registrations, compared with 3,531 for Leapmotor. In August alone, the gap narrowed, though BYD still came out ahead with 1,114 units versus Leapmotor’s 826.

It is possible the remarks were lost in translation, or that Filosa simply misspoke in Leapmotor’s favor. He may also have been referring to narrower metrics that have not yet surfaced. While overall sales figures for August are available, the detailed breakdown between BEVs and PHEVs has not been published. A clearer picture should emerge once both companies respond to requests for clarification.

BYD Compares Itself to Alfa Romeo and Jeep

While January–August sales alone would have been enough to counter the CEO’s alleged remarks, BYD went further, highlighting its performance against Stellantis-owned Alfa Romeo and Jeep.

The Chinese automaker bragged about outselling Alfa Romeo in Germany so far in 2025, a curious flex given the two brands operate in completely different segments and court completely different buyers. More specifically, the Italian marque reportedly sold 5,226 units, 5,222 according to KBA, including just 140 BEVs (Junior Elettrica) and 34 PHEVs (Tonale PHEV).

In the same vein, BYD said it sold more EVs and PHEVs than Jeep, 350 BEVs and 569 PHEVs, and claims it is closing in on overall volume, only 278 units behind. KBA data indicate that Jeep sold 8,884 units in Germany between January and August 2025, which is 321 more than BYD, a small gap that may reflect different cuts of the data or timing.

A Significantly Wider Range Of Products

A quick look at their local websites proves that BYD has a significantly larger lineup in Germany compared to Leapmotor. BYD currently offers the Dolphin Surf, Dolphin, Atto 2, Atto 3, Sealion 7, Seal, Seal U, and Tang EVs, plus the Seal U DM-i and Seal 6 DM-i PHEVs in the German market.

On the other hand, Leapmotor is currently limited to the T03 urban EV, the B10 electric crossover, and the C10 SUV in electric and range-extender versions. The range will expand soon with the the new B05 electric hatchback that debuted in Munich.

It will be interesting to see whether the marketing war between the two Chinese brands will continue with more statements in the future, and how both of them will evolve in terms of sales in export markets. On the global stage, however, the contest is lopsided: in the first half of 2025 BYD sold 2,145,954 vehicles, nearly ten times Leapmotor’s 221,664.

For much of the past decade, Tesla has dominated the U.S electric vehicle market, setting the pace for competitors and enjoying a head start that seemed unshakable. Even in 2025, it still holds a larger share than any other individual brand. But fresh sales data suggests that grip is loosening.

In August, Tesla’s share of U.S. EV sales slipped below 40 percent for the first time since October 2017, hinting that its early advantages may be running thin.

Read: Elon’s $1 Trillion Payday Only Requires A Little World Domination, Nothing Major

New data from Cox Automotive reveals that last month, Teslas accounted for 38 percent of all EV sales in the country. While any legacy automaker would be over the moon to have this kind of commanding domination over a specific market segment, it’s a significant fall from grace for Tesla, which once had an 80 percent share of total EV sales.

New Products, New Pressure

The upcoming Tesla Cybercab could give the company a lift in the U.S. market, but it faces tough odds of replicating the success of the Model 3 and Model Y. With only two seats and no traditional controls, the vehicle leans entirely on autonomous driving, a design choice that severely limits its mass appeal, not to not to mention the legal hurdles. Current regulations in most states still require conventional driver inputs, and the patchwork of laws governing self-driving cars means Tesla would face a slow, uneven rollout.

Meanwhile, rivals have been closing the technology gap and rolling out their own appealing, competitively priced electric models. That steady drip of competition has eroded Tesla’s once-unassailable lead.

Chasing an AI Identity

Some analysts argue that Tesla may not be particularly worried about protecting its auto market dominance, Reuters notes. In recent years, the company has been repositioning itself as a robotics and artificial intelligence firm, despite the fact that its automotive business still generates the bulk of its revenue.

“I know they’re positioning themselves as a robotics, AI company,” Cox Automotive director of industry insights Stephanie Valdez Streaty told Reuters. “But when you’re a car company, when you don’t have new products, your share will start to decline.”

The Market Heats Up

Data from August shows that the EV market grew by 14 percent in the US. No doubt a large contributor to this surge is the fact that the federal EV tax credit will be scrapped at the end of this month. While overall EV sales were up, Tesla’s growth slowed 3.1 percent.

Cox Automotive expects Tesla’s market share to keep shrinking as more legacy manufacturers gain traction. “These legacy manufacturers are all benefiting from this sense of urgency, and they’re able to have attractive offerings for their vehicles – and it’s working,” Streaty said. “I think we’re going to continue to see this momentum through September.”

The world of cars doesn’t always move in straight lines. Once a symbol of raw horsepower and gasoline-soaked nostalgia, the Mustang name is now carrying a very different flag for Ford. The decision to place the Mustang badge on an all-electric crossover stirred plenty of debate, but the numbers show how quickly the landscape shifted.

The Mustang Mach-E may never outsell Tesla’s Model Y, yet it’s now moving well past the traditional Mustang itself.

Read: Ford Warns Buyers Time Is Running Out For America’s Best EV Deals

August sales data released by Ford shows that last month, a total of 7,226 Mustang Mach-Es were sold across the United States. While this represents a small proportion of the total 190,206 vehicles that the Blue Oval shifted across the month, it did represent a significant 35.3 percent increase over the prior year.

Year-to-date, sales of the Mustang Mach-E are also up. Ford has managed to sell 34,319 units through the first eight months of 2025, a 6.7 percent rise from the 32,167 sold over the same period last year.

A Tale of Two Mustangs

Things aren’t looking so pretty for the regular Mustang, particularly in August. This year, a total of 31,015 have been sold across the country. This represents an 8.3 percent decline from the 33,817 that were sold during the January-August period in 2024. So, year-to-date, the Mach E is slightly outpacing the Mustang. However, the discrepancy in August sales is much more stark.

As mentioned, Ford sold 7,226 Mach-Es last month. By comparison, just 3,235 regular Mustangs were delivered, a modest 2.2 percent increase from 3,164 in August 2024. In effect, the Mach-E sold more than twice as many units as the iconic pony car that inspired its name. The sharp rise in Mach-E sales is likely tied to the federal EV tax credit ending this month, which appears to have prompted a last-minute surge in demand.

Looking elsewhere across the Ford range, sales of the F-150 Lightning rose 21.2 percent in August to 3,217 units, but sales are down 9.7 percent year-to-date to 19,077. The F-Series remains Ford’s best-selling model, shifting 68,318 units in August, easily outpacing Ford’s next best-seller, the Explorer SUV with 20,617 sold.

Hybrids Lead The Charge

Ford sold 10,671 electric vehicles in August, a solid 19.3 percent increase from last year, though year-to-date EV sales are still down 5.7 percent at 57,888. Hybrids, on the other hand, are carrying much of the momentum. With 18,773 sold last month and more than 155,000 moved this year, hybrid sales have surged nearly 24 percent compared to 2024.

Taken together, electrified vehicles now account for a growing slice of Ford’s business, pointing to a strategy that leans not only on full EVs but also on hybrids as a bridge for customers still wary of going all-in on electric.

Ford Motor Company August 2025 U.S. Sales