Even though sales tanked last year after the end of federal incentives, the American EV sector is on the mend as drivers face sky-high gasoline prices.
It’s a great time to have an electric vehicle — and more Americans are getting the message.
Despite President Donald Trump’s pledge to refrain from striking Iran before next month’s midterm elections, oil markets are still roiling. The average price for a gallon of gasoline across the country has been stuck at over $4 for months now, making it considerably cheaper to drive an EV than a gas-powered car, even if you only charge up at pricey public stations.
Of course, going electric was a pretty sweet deal a year or so ago too, when the federal government still offered tax credits for certain EV purchases. The end of those incentives sent EV sales off a cliff, but now they’re finally on the rebound. U.S. consumers bought 262,649 new EVs in the third quarter of this year, marking two straight quarters of sales growth after last year’s face-plant, according to Cox Automotive.
That number is nowhere close to the record 437,487 new EVs sold in the third quarter of last year, when Americans rushed to take advantage of federal tax credits before they expired. But this time the growth is likely to continue, Cox Automotive says, as gas prices show no sign of going down soon.
The current hot streak extends to used EVs too. Americans bought 44,350 used EVs in August, up 26% from July and up 15% from a year prior, Cox reports — and one vehicle in particular is helping drive the surge. Ford canceled production of its F-150 Lightning in late 2025 after years of sluggish sales, but the discontinued truck is now dominating the resale market. Analysts say the price tag for a brand-new Lightning was too high to attract a lot of buyers, but it’s a worthwhile deal at a reduced cost.
Of course, Americans aren’t the only ones facing gasoline price spikes and turning to EVs as a result. European drivers bought nearly 600,000 EVs in September, marking the continent’s biggest sales month on record, according to Benchmark Mineral Intelligence. And overall, global EV sales rose 17% in September compared to the month before.
Sky-high gasoline prices probably won’t continue indefinitely, but America’s EV market rebound might. One reason? Automakers are rolling out more and better all-electric options in the U.S. (even though cheap Chinese models are banned). Ford’s next electric pickup will be far more affordable than the Lightning, Subaru’s new electric SUV charges faster than its predecessor, and Rivian recently began selling a less expensive version of its popular SUV, to name a few improvements.
It all means there’s a good chance that steady, sustainable growth will persist, and that the boom-and-bust cycle of the last few years may finally have ended.
More big energy stories
Will Trump’s latest offshore wind attack disrupt permitting talks?
Trump’s Department of the Interior revived its fight against offshore wind this week as it asked a federal court for permission to reevaluate a key permit for Revolution Wind. The project off the Connecticut and Rhode Island coasts has been generating power since the spring, and is part of a growing wind fleet that delivered 4,619 GWh of power to New England in the first nine months of the year. The DOI’s request comes as part of an anti-wind group’s lawsuit against Revolution, and its potential impact on the project’s operations permit likely won’t play out for months.
It’s not the best time for the White House to go after offshore wind again. Congress is currently working to advance long-awaited bipartisan energy permitting legislation, and some House Democrats say the renewed attack on Revolution is giving them second thoughts about the package. Still, the bill’s Democratic co-authors in the Senate, Martin Heinrich (N.M.) and Sheldon Whitehouse (R.I.), have noted that the bill contains protections that would prevent a presidential administration from rolling back permits for an energy project like this one is.
Trump’s deal with Russia likely won’t ease diesel prices
Another of Trump’s energy decisions is generating pushback, including from members of his own party. In an attempt to ease a diesel shortage in the U.S., Trump announced a deal in which Russia will sell millions of gallons of the fuel to the U.S. Analysts say the move will do little to actually ease diesel prices in this country, as Russia’s fuel exports have fallen dramatically over the past year amid Ukrainian attacks on its refineries. Trump’s recent move to release more tax-exempt diesel fuel into the U.S. transport market won’t have much effect either.
Diesel prices have been rising for months in the U.S. and around the world as the war in Iran limits supplies. The International Energy Agency predicts that these strains on the market will persist into 2027.
Clean energy news to know this week
Keep the money rolling: Green banks, which fund clean energy projects in traditionally hard-to-finance sectors, have still managed to get lots of projects off the ground in spite of funding rollbacks during the Trump administration. (Canary Media)
Where’s the hydrogen? Years after the announcement of two hydrogen hub projects that were supposed to bring jobs and economic benefits to Pennsylvania and neighboring states, progress has completely stalled. (Inside Climate News)
Clean jobs erased: The U.S. had about 37,000 fewer clean energy jobs at the end of 2025 compared to the year before, marking the first decrease after four years of consistent growth, though overall energy jobs fell as well. (Canary Media)
Save it for later: The levelized cost of energy for four-hour battery storage is now 65–75% cheaper than that for gas peaker plants across the globe, a new Wood Mackenzie analysis finds. (Utility Dive)
Coal cost concerns: Democrats and clean energy advocates are making a campaign issue out of the Trump administration’s orders to keep coal plants open in Michigan and Indiana. (Capital and Main)
Letting emissions slide: European Union leaders propose delaying the bloc’s methane emissions rules for oil and gas imports by a year in response to urging from the U.S. and other countries. (Reuters)
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