The real test of the U.S. electric vehicle market has begun.
Without the $7,500 federal tax credit to lean on, automakers now have to sell EVs on merit and price, while somehow carving out a path to profitability. That doesn’t mean sales are about to collapse. A new poll shows Americans are still open to EVs if discounts are available. The good news: Carmakers are already stepping up with price cuts and incentives.
Welcome to the Friday edition of Critical Materials, your daily round-up of news and events shaping the world of electric cars and technology.
Also on our radar today: Some Tesla investors plan to vote against Elon Musk’s trillion-dollar compensation next month, and they’re also not thrilled about Tesla’s record sales quarter. Plus, we discuss why BYD’s dream run in China has come to a grinding halt after years of record sales.
30%: Americans May Continue Buying EVs: Poll
Photo by: InsideEVs
Analysts have projected that EV sales may decline significantly with the expiration of the $7,500 federal tax credit. Even Ford CEO Jim Farley has estimated that the EV market will be significantly smaller, possibly accounting for only about 5% of the overall car market, compared to 11% in the third quarter.
But a new Harris Poll published by Automotive News suggests Americans aren’t ready to give up on EVs just yet. The vast majority of the 2,000+ respondents surveyed in late September said they’d still consider an EV—if the price was right.
Here is more from the outlet:
The majority of the EV defectors surveyed—60%—would need an incentive of at least $5,000 to consider an EV, and nearly 30 percent would reconsider an EV with an incentive ranging from $2,500 to $4,999. Eleven percent would settle for an incentive of less than $2,500.
Incentives are important to EV adoption because affordability remains a top concern among buyers, said Greg Paratore, senior consultant at the Harris Poll. Affordability is the top concern for 64% of EV buyers, according to an August study by the Harris Poll and Urban Science.
Sept. 30 has come and gone, but the discounts still exist. Sales growth may not be as robust as it was before, but if automakers continue to offer technologically superior vehicles at competitive prices, buyers will not run away.
General Motors and Ford have extended the use of the federal tax credit by having their financing arms purchase EVs on dealer lots with initial down payments, which would qualify those models for the tax credit. It’s a creative arrangement that will lower purchase price or monthly lease payments.
The 2026 Hyundai Ioniq 5 now gets an average price cut of over $9,000. That means the starting price of the Ioniq 5 is now $35,000 before destination. That’s on par with the Chevy Equinox EV and Toyota bZ, which are both competitive but not as advanced as the Ioniq 5, which gets rides on an 800-volt architecture with some of the fastest-charging speeds in the U.S. Hyundai will also continue offering $7,500 cash incentives on model year 2025 Ioniq 5s, which are on dealer lots through October.
Rivian’s lease deals have not vanished either. The EV start-up is offering a $6,500 rebate on select R1T and R1S models to customers who take delivery of their vehicles before October 31.
Also note that several affordable models are imminent. The all-new Nissan Leaf with over 300 miles of range and a $30,000 starting price is now on sale. The next-generation Chevy Bolt EV is around the corner, and it’s already leaked. Additionally, Tesla has a more affordable Model Y (or whatever it will be called) in the pipeline. The timing is ripe for these affordable EVs, and they might help the industry continue moving forward despite the broad attack on clean energy from the White House.
At the same time, the plan to continue growing the EV market share comes at the expense of automakers’ bottom lines more than ever, right when they’re getting slammed by tariff costs. That could end up being a toxic cocktail. As before, get the deals while they last.
60%: Some Tesla Investors To Vote Against Musk’s Trillion-Dollar Compensation
Photo by: YouTube
Some Tesla inventors aren’t thrilled about the prospect of CEO Elon Musk becoming the world’s first trillionaire. He already became the first half-trillionaire this week. This group comprises the SOC Investment Group and state treasurers from Nevada, New Mexico, and Connecticut.
Here’s more from Reuters:
The group cited what it called the board’s “relentless pursuit” of retaining Musk, saying it has delayed progress on key goals set at the last annual meeting, and pointed to declining operational and financial performance and a “failure to provide meaningful real-time oversight of management.”
The news comes as Tesla investors shrugged off record Q3 deliveries of nearly half a million EV sales globally. Tesla’s share price dropped by 3% as of Thursday afternoon, indicating that the company’s market value is closely tied to developments in AI and robotics, rather than vehicle sales.
90%: After Years Of Rapid Growth, BYD Sales Decline In China
Photo by: Kevin Williams/InsideEVs
BYD has experienced explosive growth in China over the past five years, as the automaker ceased production of gas cars and focused solely on battery electric and plug-in hybrid vehicles. But its sales declined for the first time in half a decade amid rising competition and government intervention to prevent predatory pricing.
Here’s more from Nikkei:
Since March 2025, year-on-year growth has slowed with each passing month. In August, sales rose just 0.1%, and they fell 6% in September to 396,270 units. Passenger cars, which account for over 90% of sales, were down 6% to 393,060 units.
Rivals Geely, Leapmotor, and Xiaomi have been rapidly growing in China, offering cutting-edge EVs at competitive rates. Additionally, the Chinese government intervened amid the price war, which was hurting smaller suppliers who were receiving delayed payments from car companies, sometimes as long as 200 days in some cases.
A regulatory change in June now forces companies like BYD to pay suppliers within 60 days of component delivery. Now BYD is seeking to make up for the slowdown in China by expanding in Europe, with a new plant under construction in Hungary. And it showcased several new models at the IAA Mobility 2025 motor show in Munich last month.
100%: Which Brand Will Win The Affordable EV Battle?
Photo by: Motor1.com
The $35,000 Chevy Equinox EV shot to the top of GM’s sales charts when it went on sale last year, proving that buyers will jump at an EV with decent range and a reasonable price tag. But the Equinox EV now faces serious competition. Hyundai is rolling out a similarly priced 2026 Ioniq 5. Nissan has opened orders for its new Leaf. And Tesla’s long-rumored affordable Model Y-based crossover is lurking just around the corner.
So who do you think is best positioned to win? Buyers want low prices, but also quick charging stops and the ability to occasionally take long-distance road trips. Will it be Tesla, Hyundai, or GM? Or could Nissan, Ford, or even Toyota stage a surprise comeback?
Have a tip? Contact the author: suvrat.kothari@insideevs.com
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