December EV Market Update: Year-End Incentives Return as Market Stabilizes
December 2025 EV market data shows sales stabilizing as year-end dealer incentives return. We analyze the latest trends and what they mean for January 2026.
December 2025 EV sales data shows the market stabilizing after the sharp post-tax-credit correction of October-November, as year-end dealer incentives return and automakers begin clearing model-year 2025 inventory. Here’s what the latest data shows.
The December Picture
Total new BEV registrations in December 2025 are estimated at 82,000 units — up from 63,000 in November (a typical December seasonal rebound) but still down 38 percent from December 2024’s 132,000 units.
The year-end uptick reflects several factors:
- Seasonal strength: December is typically the strongest sales month of the year for all vehicles, driven by manufacturer incentive programs and dealer push to clear inventory.
- Tesla incentives: Tesla increased year-end incentives in December, including a referral bonus that provided $1,000 off new purchases.
- Legacy brand incentives: Ford, GM, and Hyundai all increased lease and purchase incentives on EV models in December.
Who’s Offering What
Tesla: $1,000 referral bonus on new purchases through December 31. Free Supercharger access for new buyers. 0.99 percent financing on 72-month loans.
Ford: Up to $7,500 cash allowance on F-150 Lightning purchases (effectively replacing the expired federal tax credit). 1.9 percent financing on 60-month loans.
GM: Up to $6,000 cash allowance on Chevrolet Equinox EV and Blazer EV purchases. $500 college graduate bonus.
Hyundai/Kia: Up to $5,000 cash allowance on IONIQ 5 and EV6 purchases.
What This Means for January
January typically sees a sharp drop-off as the year-end incentive programs expire and the new year begins. We expect January EV sales to fall back to approximately 65,000-70,000 units — the post-correction baseline.
The key question for January and beyond is whether the incentive programs will be extended. Ford and GM have signaled that they will maintain elevated incentive levels into Q1 2026, as they work to move inventory while awaiting clearer policy direction on federal EV support.
The Market Stabilization Signal
The December stabilization is, despite the lower year-over-year comparison, a cautiously positive sign. The market appears to be finding a floor — approximately 65,000-80,000 units per month — that reflects genuine consumer demand for EVs at the right price point. That floor is well below the 130,000+ units the industry was projecting in 2022, but it is a real market.
For more on the EV market, see our year-end EV recap.
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