Now that we have two months of post-federal-tax-credit trends to draw upon, it's safe to say that the EV sales picture at retail has been profoundly altered. After a three-month run-up after the expiration timeline was announced, movement of EVs plummeted to 26,200 in November—down by two-thirds compared to the recent peak and by more than half compared to a year ago. Hybrid vehicles, meanwhile, have benefited from that drop in demand, with a year-over-year movement gain that largely mirrors the EV decline.
Additionally, OEMs have recalibrated their inventory positions in a way that will perpetuate this marketplace dynamic. The pre-tax-expiration buying rush resulted in a steep drop in EV supply, which has now become the current new-normal at just above 100,000. Hybrid supply positions, on the other hand, have moved in the opposite direction, with a sharp increase pushing current supplies above half a million.
The landscape of fuel-efficient choices has therefore tilted decidedly in favor of a tried-and-true technology, and consumers are moving down that path accordingly.
With the amount of attention, priority, and investment put into the EV sector over the past several years, this represents a fundamental change regarding the present financials and future positioning of OEMs going forward.
Taken together, these shifts point to more than a temporary market wobble—they signal a foundational resetting of consumer expectations and OEM strategy in the wake of the tax-credit expiration. With hybrids now capturing the promise once reserved for EVs, the competitive landscape for fuel-efficient vehicles is being redrawn in real time. Whether this moment proves to be a pause in the EV adoption curve or a longer-term realignment will depend on how automakers respond. But for now the retail reality is clear: shoppers are choosing proven technology, and the industry is moving to meet them where they are.