Global automakers in the United States and elsewhere have a significant opportunity to capture growing electric vehicle (EV) demand. According to BNEF sales forecasts for 2025, China saw EV sales grow nearly 30 percent year-over-year, and Europe saw 17 percent growth. Meanwhile, cooling 2026 sales forecasts in the United States have multiple major automakers scaling back their EV plans.

Federal incentives have played a major role in driving US electric vehicle trends this past year. Sales climbed to record heights in the third quarter of 2025 as consumers rushed to take advantage. Once tax credits sunset, sales took a nosedive for the remainder of the year.

Despite this demand rollercoaster, which resulted in a slight decrease in sales (4 percent) compared to 2024, 2025 was the second-best year ever for EV sales in the United States. Still, at a global level, EVs are seeing much more momentum.

So, what’s needed to keep the United States in the EV game? It’s not all about tax credits.

The purchase price gap for a new EV compared to a gas-powered vehicle narrowed at the end of 2025 and we expect it to continue to shrink over time. That change is key, because while the total cost of ownership is lower for an EV compared to a gas-powered vehicle (thanks to lower fuel costs and reduced maintenance needs), the up-front cost remains a hurdle for many consumers buying new. Some states and utilities offer incentives that can help close the purchase price gap sooner.

Beyond addressing cost, charging access will also be essential to move US EV sales forward. About half of consumers within a mile of a public charger report being likely to buy an EV, compared to just over a quarter of consumers more than two miles from a charger. This access is most essential for consumers without a charger at home.

Fortunately, the number of public electric vehicle chargers continues to grow across the country, with 170,010 level 2 chargers and 66,374 DC fast chargers available at the end of 2025. The boost is especially significant for fast chargers, with nearly double the amount available in 2023. Now, 42 states have approved plans to expand charging infrastructure under the National Electric Vehicle Infrastructure program in fiscal year 2026. Going forward, this federal program is expected to fill gaps and ensure fast chargers are available every 50 miles on highways.

Despite the US sales forecasts, momentum remains for electric vehicles. Addressing affordability and charging access will help US automakers unlock that momentum and keep pace with the growing global shift to electric transportation.