Despite the uncertainty over tariffs on auto imports and parts and a new House Republican bill aiming to eliminate federal EV tax credits, Americans are continuing to show strong appetite for electric vehicles. Demand has held steady compared to the same period last year, according to a new study from consumer insights and research firm J.D. Power.
EVs are powering a once-in-a-century transformation of the U.S. auto industry, but the country remains sharply divided over their adoption. Uptake has surged in coastal and Democratic-leaning states, particularly among younger buyers, while rural areas lag behind. Even as EV sales hit record highs last year and again in Q1 2025, federal support is beginning to waver, with the Trump administration pledging to dismantle pro-EV policies.
Photo by: Ford
According to the J.D. Power study, 24% of vehicle buyers said they are “very likely” to buy an EV and 35% are “somewhat likely”—these metrics remain essentially unchanged from a year ago. So about 60% of vehicle shoppers have EVs on their minds, but the conversion rate remains far lower due to myriad reasons. EVs accounted for only about 7.5% of total vehicle sales in the U.S. in the first quarter, still up from 7% in Q1 2024, according to Cox Automotive.
Despite the headwinds, the EV market is showing surprising resilience, even though it’s not clear if it will stay that way. There’s an influx of new and affordable models such as the Chevy Equinox EV and demand remains strong for its rivals such as the Kia EV6 and Honda Prologue. Tesla sales have been sliding, but its rivals are eagerly stepping in to fill the void—both the Ford Mustang Mach-E and Hyundai Ioniq 5 are stealing Tesla buyers.
That’s the other big reason why consumer demand is steady: more options. EV shoppers who fall in the “very likely” consideration category are trying out models from multiple brands and cross-shopping at an average of nearly 3 brands. Buyers falling in the “somewhat likely” EV consideration category cross-shop an average of 2.8 brands.
It’s hard to not do that when you have offers from Polestar and Lucid that top $20,000 in stacked discounts if you’re a current Tesla owner. Or when you have short-term, low-commitment lease deals from Nissan, Toyota, Hyundai and Kia that have consistently remained under $300 per month.
Photo by: Kevin Williams/InsideEVs
“As more EV options come to market, this should serve as an encouraging sign for automakers because it’s an opportunity for them to gain a foothold and pull shoppers from outside their brands,” Brent Gruber, executive director of the EV practice at J.D. Power, said in a statement. “EV shoppers consider products from mass market and premium brands alike, highlighting the opportunity to capture consumer interest with brands or products that shoppers may not have otherwise considered,” he added.
Still, the study states two big reasons continuing to plague the EV market: charging anxieties and affordability. Availability of EV charging stations remains the top concern for this pool of buyers, and that’s where the market is losing more than half of its potential buyers: 52%. Affordability is also a concern, but that situation is improving due to costs dropping 4% year-over-year. Now just 43% of buyers list it as a major concern.
Now the Trump administration is coming after the very policies that have made EVs so popular and affordable, like the so-called “leasing loophole,” which qualifies EVs for federal tax credits even if those models don’t meet the strict battery and component sourcing requirements under the Inflation Reduction Act. The administration is also separately going after funding for public charging stations and trying to repeal the 45X production credit that has created a battery manufacturing boom across the U.S.
The House Republican bill may face some resistance in the Senate, as tens of thousands of EV jobs are at stake in Southern red states like Georgia and North Carolina. Still, long-term EV industry growth may ultimately rely less on tax credits and more on fundamentals of this industry, such as expanding the charging network and making it more reliable, bringing innovative car features to attract buyers and driving down sticker prices. That work is already being done, and we’ll soon see the results.
Have a tip? Contact the author: [email protected]
