EV Registrations Rebound After Months of Decline Despite Tax Credit Loss

Electric vehicle (EV) registrations in the U.S. dropped 9.8% year-over-year in April 2026, marking the smallest decline so far this year and signaling a potential market rebound. The total number of new EV registrations reached 89,147 units, according to S&P Global Mobility data shared by Automotive News. This follows sharper declines of 41%, 37%, and 25% in January, February, and March 2026, respectively, compared to the same months in 2025. The initial plunge in EV sales stemmed from the repeal of the Inflation Reduction Act and the loss of the $7,500 federal tax credit, which increased the cost of purchasing or leasing EVs. Despite the April decline, analysts view the trend as a normalization phase rather than a collapse. “We’re seeing gradual inching up, and I think we’ll continue to see that,” said Tom Libby, an automotive analyst at S&P Global Mobility. Tesla maintained its market leadership with 45,800 registrations, a 13% increase from April 2025, likely driven by strong Model Y sales. Chevrolet followed as the second-highest with 5,890 registrations, though this represented a 36% drop from the previous year. Toyota saw a dramatic 225% surge to 3,524 registrations, fueled by the launch of new electric models including the C-HR, bZ Woodland, and a facelifted bZ. Subaru also experienced a 99% increase to 1,959 registrations, attributed to shared-platform EVs like the Trailseeker, Uncharted, and a facelifted Solterra developed in collaboration with Toyota. The data highlights a shifting dynamic where brands rolling out new EV models—especially those priced competitively against gas-powered equivalents—are seeing relative sales spikes. Higher gas prices are also likely contributing to renewed consumer interest in EVs, even without the federal incentive. Registration data, while lagging by about two months, provides a clearer picture of U.S. EV adoption since Tesla does not break down deliveries by region and some automakers report sales quarterly rather than monthly.