Rush to Buy Before Tax Credit Expiration Drives Record EV Sales at Ford, GM

The expiration of the Clean Vehicle Credit marks a pivotal moment in the EV industry, an analyst said.

A pair of 2021 Ford Mustang Mach E vehicles are displayed for sale at a Ford dealer in Wexford, Pa., on May 6, 2021. Keith Srakocic/AP Photo

Consumers rushing to purchase electric vehicles prior to the expiration of a $7,500 federal tax credit led to record third-quarter electric vehicle (EV) sales for America’s largest automakers.

Ford Motor Company said on Oct. 1 that its U.S. sales were up by 8.2 percent year over year in the third quarter. EV sales of 85,789 vehicles marked a nearly 20 percent increase for the quarter. The company’s U.S. sales have grown for seven consecutive months.

Detroit-based General Motors (GM) also said on Oct. 1 that its U.S. sales increased 8 percent year over year in the third quarter, led in part by record EV sales of 66,501 vehicles. GM said it has delivered 144,668 electric vehicles so far this year, a 105 percent increase from the same period in 2024.

Consumers eager to take advantage of the clean-vehicle tax credit before it expired on Sept. 30 spurred purchases of hybrid, battery-electric, and plug-in hybrid vehicles, the companies said. The tax credit offered a $3,750 credit for vehicles that met critical minerals requirements, along with an additional $3,750 credit for vehicles that also met battery components requirements.

Andrew Frick, president of Ford Blue and Model e, Ford’s global retail business units for gas, hybrid, and electric vehicles, said the quarter’s growth showcased the flexibility and breadth of the company’s portfolio. Popular electric vehicles from the company include the Mustang Mach-E sports car, F-150 Lightning truck, and E-Transit van.

Ford also saw a year-over-year increase of 30 percent in subscriptions to Ford Pro software, which provides a wide range of telematics solutions for fleet vehicles.

“We saw strong performance in gas, hybrid, and electrified powertrains, while at the same time growing our paid software solutions, all embedded in vehicles such as Expedition, Explorer and F-150,” Frick said.

GM’s overall sales for 2025 are the strongest pace in the past 10 years, the company said. Sales through the first three quarters reached 2.2 million vehicles. The Chevrolet Equinox EV was the industry’s best-selling EV outside of Tesla, GM said, while the Cadillac Lyriq, Optiq, and Vistiq are all in the top 10.

Duncan Aldred, GM’s senior vice president and president of North America operations, said the company is in a strong position to meet changing consumer demand.

“We have the best lineup of [internal combustion engine] and EV vehicles we’ve ever had,” Aldred said. “Our brands have grown market share with consistently strong pricing, and low incentives and inventory.”

Automotive services provider Cox Automotive predicted last month that consumers eager to claim the now-expired tax credit would push EV sales to record highs. Total third-quarter U.S. EV sales were projected to hit 410,000 vehicles, accounting for almost 10 percent of total new auto sales, Cox said in September.

Stephanie Valdez Streaty, director of industry insights at Cox, noted that the expiration of the New Clean Vehicle Credit marks a pivotal moment in the EV industry.

“The federal tax credit was a key catalyst for EV adoption,” Valdez Streaty said. “This shift will test whether the electric vehicle market is mature enough to thrive on its own fundamentals or still needs support to expand further.”