The loss of $7,500 federal tax credits should, in theory, have put every EV brand on an even footing, but Tesla and its customers decided to write their own script. While most electric car values have dropped since last fall, Tesla values are actually climbing.

According to a new study, used Tesla prices have risen 4.3 percent since the EV credit disappeared at the end of September 2025. Over the same period, nearly every other used EV dropped an average of 3.6 percent.

More: EV Sales Fell Off A Cliff, Yet New Car Prices Still Set Another Record

Because Teslas make up such a huge slice of the used EV pie, the average price of all used EVs actually went up 3.5 percent, painting a superficially rosy picture. Strip Tesla out of the equation and things look very different. Non-Tesla EVs slid from an average of $24,629 to $23,738. Meanwhile, used combustion cars dipped 2 percent.

Declining Share

The iSeeCars study also found that used EV market share fell 20 percent between September and January, dropping from 3.5 percent to 2.8 percent. A year earlier, that share had been climbing, but now it is heading the other way. The early adopters already have their EVs. Mainstream buyers are apparently thinking harder about price, charging, and range.

Average Prices For 1- To 5-Year-Old Used Cars

Look at individual models and the pattern gets clearer. Lower-cost EVs like the Hyundai Kona Electric, Volkswagen ID.4, Kia Niro EV and Nissan Leaf all lost between roughly five and six percent of their value. Meanwhile Tesla Model 3 and Model Y prices ticked up, as did those for the Porsche Taycan, the only non-Tesla EV to experience a jump in values.

New EV Prices Down

New EVs tell a similar story. Excluding Tesla, which iSeeCars doesn’t have data for, average new EV prices dropped 2.3 percent, while new internal combustion vehicles rose 2.5 percent. Some mainstream EVs like the Hyundai Ioniq 5 and Chevrolet Equinox EV saw even steeper cuts.

Carmakers are clearly trying to replace that vanished tax credit with old fashioned discounting, but falling EV sales figures since tax credits disappeared tells us it’s not a complete fix.

Average Used EV Prices

Average New EV Prices

Electric vehicles have come a long way in the past few years, and the progress is finally showing up where it matters most: in owner satisfaction. According to the latest data, these steady gains in technology and infrastructure are translating into record-high approval from drivers.

That’s the verdict from JD Power’s 2026 U.S. Electric Vehicle Experience Ownership Study, which found premium EV satisfaction climbed from 756 points last year to 789 in 2026. Mainstream EVs also improved two points to hit 727 out of 1,000.

More: A Third of Americans Are Priced Out Of New Cars, And It’s Getting Worse

The highest rated premium EVs were the Tesla Model 3 (804), Tesla Model Y (797), and BMW i4 (795). On the flip side, the new Audi Q6 e-tron came in dead last at 690. It placed well below the Lucid Air (740) and Rivian R1T (739).

Segment Standouts And Stragglers

On the mass market side of the equation, the Ford Mustang Mach-E took top honors with a score of 760. The electric pony car was followed by the Hyundai Ioniq 6 (748) and Kia EV9 (745). Interestingly, the two lowest rated EVs were the Chevrolet Blazer EV (711) and Honda Prologue (623). That’s a huge point spread considering both models are built by GM and have a lot in common.

Of course, things aren’t completely straightforward as the study examined ten different factors. This includes the “accuracy of stated battery range, availability of public charging stations, battery range, cost of ownership, driving enjoyment, ease of charging at home, interior and exterior styling, safety and technology features, service experience, and vehicle quality and reliability.”

Encouragingly, 96 percent of EV owners said they would consider buying or leasing another one and the study also found quality has improved. That’s especially true of premium EVs, which had 15.9 fewer problems per 100 vehicles compared to last year. This brought the total down to 75 and JD Power said this was driven by noise improvements as well as fewer problems with driver assistance technology.

Is Charging Still A Concern?

The study also found that EV drivers are becoming more satisfied with public charging. Scores climbed by over 100 points and this is being attributed to growing charging infrastructure as well as the opening of Tesla’s Supercharger network to other automakers.

Last but not least, EV drivers are more satisfied than those with plug-in hybrids. Premium EVs scored 114 points higher than their PHEV rivals, while mainstream electric vehicles had a 117 point advantage. Part of this can be chalked up to the cost of ownership as plug-in hybrid drivers have to deal with a more complex powertrain that involves gas and electricity.

In a statement, JD Power’s Brent Gruber said “Improvements in battery technology, charging infrastructure and overall vehicle performance have driven customer satisfaction to its highest level ever. What’s more, the vast majority of current EV owners say they will consider purchasing another EV for their next vehicle, regardless of whether they benefited from the now-expired federal tax credit.”

After years of sparring with California regulators, Tesla has agreed to stop using its famous Autopilot term in the state, neatly sidestepping a 30-day suspension that would have frozen sales in its biggest US market with nearly 180,000 deliveries last year.

More: Tesla Quietly Kills Standard Autopilot, Now Wants $99 A Month To Give It Back

The California Department of Motor Vehicles (DMV) wasn’t amused by Tesla’s marketing language, arguing that phrases like “Autopilot” and “Full Self Driving Capability”, later softened to “Full Self-Driving (Supervised)”, gave buyers the impression their cars could drive themselves. The DMV pointed out that they can’t now, and never could, operate as autonomous vehicles.

The formal accusations were filed in 2023, though regulators traced the issue back to marketing language used as early as May 2021. At the time, Tesla described its system as capable of handling short and long-distance trips with no action required by the person in the driver’s seat, a claim the DMV said crossed a legal line.

60 Days To Find A Fix

A judge agreed and proposed suspending Tesla’s dealer and manufacturer licenses for a month. That would have been awkward timing for a company trying to convince the world that robotaxis are just around the corner. The DMV offered Tesla 60 days to fix the issue before the suspension started, and instead of digging in, Tesla wisely took corrective action.

“The DMV is committed to safety throughout all California’s roadways and communities,” said DMV Director Steve Gordon. “The department is pleased that Tesla took the required action to remain in compliance with the State of California’s consumer protections.”

So Autopilot, as a marketing term, is now gone in California (though you’ll still find it on the brand’s EVs elsewhere in the world). The company had already softened Full Self Driving into Full Self Driving Supervised to make it crystal clear that, no, the car is not fully autonomous. By complying with the deadline, Tesla avoided the suspension and kept the revenue rolling in.

Autopilot Feature Phased Out

This is not just a word swap, though. We reported last month that Tesla had already begun phasing out the previously standard Autopilot system on its cars, replacing it with Traffic Aware Cruise Control and pushing buyers toward a $99 per month Full Self Driving subscription.

Lane centering that rivals include as standard now lives behind a paywall, and CEO Elon Musk has hinted that the subscription price could rise over time. From a business perspective, it’s clever, but from a branding perspective, it looks like a climbdown.

Autopilot was one of Tesla’s most recognizable terms, though it was also one due to be left behind in the coming years as the far more sophisticated FSD improves to the point where it really can deliver full self-driving.

Xiaomi has quickly established itself as an automaker to be reckoned with in China, and last year, it achieved something that would’ve seemed unlikely just a few years ago: its all-electric SU7 sedan outsold the Tesla Model 3.

Once the brand of choice for EV-hungry Chinese consumers, Tesla now finds itself outpaced by domestic rivals that are rapidly improving their game. Xiaomi is leading that charge.

Read: Xiaomi’s YU7 Outsold Tesla’s Model Y And Now It’s Getting Personal

Data from the Chinese Passenger Car Association shows that in 2025, Xiaomi sold 258,164 SU7s. That’s nearly double the roughly 135,000 units it moved in 2024, a figure made more impressive given that the SU7 only launched in April of that year.

Perhaps more notably, it overtook the Tesla Model 3, which saw 200,361 deliveries in the same period.

What’s Driving the Switch?

Chinese buyers have responded well not only to the SU7’s design inside and out but also to the technology it packs and the performance it delivers.

The base version undercuts a comparable Model 3 by roughly 9 percent, according to a report from the South China Morning Post, giving it a clear pricing advantage. Strong driving range and well-specced hardware round out the package, allowing the SU7 to compete in a segment Tesla once dominated.

“Tesla’s dominance in the premium EV segment has been eroded by its Chinese competitors that are able to churn out vehicles on par with its technology standards while offering them at lower prices,” a senior manager at the Shanghai-based consultancy Suolei told the outlet. “Xiaomi’s success is a strong boost for Chinese carmakers, which are all trying to move up the value chain.”

What’s in Store for 2026?

This year is shaping up to be even bigger for Xiaomi. In April, an updated SU7 will be launched, complete with more advanced driving assistance functions, including LiDAR across the entire family, and an improved driving range of up to 902 km (560 miles) on the CLTC cycle.

Within the first 15 days of pre-orders opening, Xiaomi reportedly secured 100,000 reservations for the refreshed model.

Also: Ford’s Jim Farley Was “Shocked” After Tearing Down Xiaomi And Tesla EVs

In total, Xiaomi sold 411,800 vehicles last year and is targeting 550,000 in 2026. This will also be the first full year of availability for the YU7 SUV, which could become its best-selling model.

Back in October, the YU7 notched 33,662 sales in a single month, even edging past the Tesla Model Y. Xiaomi’s third model, the YU9, will also make its debut this year as a range-extender EV.

It’s no secret that Tesla had a tough run in Europe last year. After several years of outpacing legacy automakers in EV sales, 2025 brought a sharp reversal that few would have seen coming just a couple of years ago. The brand that once led the electric car race is now falling behind a familiar rival with a very different backstory.

Read: BYD Sold Nearly Three Times As Many Cars As Tesla In Europe

Volkswagen sold more battery-electric vehicles in Europe than Tesla last year. Yes, VW, the same manufacturer that was mired in the diesel emissions scandal just as Tesla was gearing up for the Model 3, has now overtaken the American brand on its home turf.

Changing of the Guard

According to figures from Dataforce reported by Autonews, the VW brand moved 274,417 fully electric vehicles in Europe in 2025, a jump of 56 percent from its 2024 total of 175,654. Things weren’t so pretty for Tesla.

Its sales declined 27 percent last year, dropping from 326,714 units to 238,765. This came despite the fact that the Tesla Model Y remains Europe’s best-selling EV with 151,331 units sold last year, significantly more than the 94,106 Skoda Elroqs that were sold over the same period. However, Model Y sales were still down 28 percent from 2024, when 210,265 were sold.

Europe’s Best-Selling EVs

Dataforce

Helping the VW brand take the top place from Tesla is the fact that it has a larger range of EVs. For example, the VW ID.4 sold 80,123 units last year, up 23.8 percent. A total of 78,667 VW ID.3s were sold, up 44.4 percent. The ID.7 also saw growth, with 76,368 units finding new homes, a 137.2 percent rise.

To put these figures into perspective, Tesla sold 86,261 Model 3s. And while that beat out any individual VW model, it was still down 23.6 percent from 2024.

VW Conquers All…Almost

VW’s strong year wasn’t limited to EVs. It also topped Europe’s plug-in hybrid (PHEV) segment, selling 159,173 units, a 205 percent jump from 2024. That was enough to comfortably beat BMW, with 142,285 sales, followed by Mercedes-Benz at 135,878 and Volvo at 104,270.

The VW brand also led in both gasoline and diesel vehicle sales. Its gas-powered lineup moved 737,821 units in 2025, staying well ahead of Peugeot’s 492,133, despite VW recording a 7.3 percent decline. Diesel sales reached 269,277 units, down 19.4 percent from the previous year, but still enough to edge out Mercedes, which sold 250,326.

Europe’s Top-Selling EV Brands

Dataforce

Traditional hybrids were the only powertrain segment that VW didn’t take top honors in, as Toyota held the crown with 626,675 sales. Although VW didn’t rank in the top five, things could change this year as it plans to launch the new T-Roc, complete with a hybrid powertrain.