Electric vehicle trends in 2025

Tax incentives

One of the first things to be aware of is that government tax incentives for electric vehicles have changed. You can still apply for a federal tax of up to $7,500; however, the list of vehicles it applies to has shortened.

Here are some of the requirements:

• The vehicle must be manufactured in North America and have an MSRP of less than $80,000 (for an SUV) or less than $55,000 (for a sedan)
• A portion of the battery must be produced or assembled in North America (to qualify for the first half of the tax credit)
• A portion of minerals used in the battery must be extracted from or processed in the U.S. (to qualify for the other half of the tax credit)

Some VINs within a make and model may apply, while others might not. Your dealership should be able to tell you which ones meet the requirements. You can also search for eligible vehicles on the U.S. government website devoted to fuel economy information^[3].

One advantage is you no longer have to wait until tax season to apply for your tax credit. You can now get the credit as an instant discount when you purchase the car at the dealership.

There is some possibility that the current administration will make changes to the EV tax credits, but as of now, nothing has been announced.^[4]

Advances in charging infrastructure

Another change in the wind is the type of charging stations used by vehicles. Tesla developed the North American Charging Standard (NACS) and has created a large network of charging stations that, as of 2023, have only been available for Tesla vehicles. However, by the end of 2025, nearly all EVs will have access to some of Tesla's Supercharger charging stations. Some Ford and Rivian vehicle models already have adapters that give them access to charge at Superchargers.^[5]

In the U.S., the number of publicly available EV chargers has already doubled since the end of 2020, according to the Joint Office of Energy and Transportation.^[6] That said, there is some instability in terms of growth in charging infrastructure due to the new administration. One of Trump’s executive orders instructed federal agencies to pause the distribution of funds for new EV chargers. However, most of the funding from the Biden administration’s 2021 Bipartisan Infrastructure Law and National Electric Vehicle Infrastructure (NEVI) Formula Program has already been distributed. There are also private companies providing funding for charger development. 

Growth in electric vehicles has slowed, but the industry is still growing. The technology is also improving, making batteries more affordable and more efficient. As battery prices decrease, we may soon reach a point hwne replacing an EV battery pack could become more affordable than replacing a combustion engine. This can open the market to people who might have previously considered EVs out of their price range. 

A survey we ran last year found that one in five people have considered going fully electric and that the primary reason for holding back was cost. 

In 2025, experts forecast decreased prices and greater availability of affordable electric vehicle options. Part of this is due to battery and production costs becoming more reliable. The average price for a new EV is now only about 12% higher than the new car market average. However, just last in 2024, it was 16% higher. In 2020, EVs were a full 42% higher than the market average.^[7]