On the surface, July 2025 looked like a banner month for electric vehicle (EV) sales across the United States. According to Cars.com’s latest Industry Insights report, new-vehicle sales jumped by 6.6% year-over-year—even as dealer inventory saw its first drop since 2022. But dig a little deeper, and the story gets more complicated. The surge, experts say, is driven by a “buy now” mentality as shoppers scramble to lock in deals before looming tariffs and the imminent end of the federal EV tax credit push prices out of reach for many.
As of August 22, 2025, American car buyers have more electric options than ever before. There are now 75 EV models on the market, representing a 27% increase compared to last year. Yet, despite this abundance, the pace of new EV inventory growth has slowed to just 9% year-over-year—the lowest rate since before the Inflation Reduction Act revived federal incentives for clean vehicles. With the $7,500 federal EV tax credit set to expire on September 30, the sense of urgency among buyers is palpable.
“We’re seeing a lot of customers who want to get in before the tax credit goes away,” said one industry analyst, reflecting a sentiment echoed across dealerships. The end of the credit is expected to trigger another wave of buying, but after that, the market could cool dramatically—especially as tariffs begin to take their toll on sticker prices.
Automakers have already absorbed an estimated $12 billion in tariff costs during the second quarter of 2025 alone, all in an effort to keep prices steady for consumers. But this strategy isn’t sustainable, and the costs are expected to be passed on to buyers in 2026 models. At the current 25% tariff rate, the average new-vehicle price could leap from $48,000 to $54,400—a jump of about $6,400. Even if trade negotiations manage to reduce tariffs to 15%, buyers would still face increases of more than $4,000. And with household incomes having grown by only 1% last year, the affordability gap is widening fast.
This looming price hike has many would-be buyers turning to the used EV market, which is experiencing its own boom. Used EV inventory is up 33% year-over-year, with average prices dipping 2% to $36,000. Affordable pre-owned models under $25,000—such as the Tesla Model 3, Nissan Leaf, and Chevy Bolt EV—are selling 20% faster than the average used car, according to Cars.com. Many of these vehicles also qualify for the $4,000 used-EV tax credit, which, like its new-EV counterpart, is set to end on September 30.
Meanwhile, the EV revolution is making waves at the state level. North Carolina, for instance, is experiencing a dramatic transformation. As of February 2025, the state boasted more than 112,000 registered EVs—a nearly 40% increase from the previous year, according to the North Carolina Department of Transportation. This rapid growth is fueling a corresponding expansion in charging infrastructure.
Charlotte-based company Koulomb is at the forefront of this effort, having recently opened a state-of-the-art fast-charging depot off I-485 in south Charlotte. The facility, which took about two years to develop, features 12 fast-chargers beneath a solar canopy and can recharge an EV in about 15 minutes. “We can have 12 cars here at once,” said Koulomb co-founder Jeff Constantineau in an interview. “We haven’t seen that yet, but I imagine that day will come at some point.”
The site is designed not just for convenience, but to address one of the biggest barriers to EV adoption: range anxiety. “This is an in-a-pinch solution,” Constantineau explained. “Eighty percent of charging should be done at the home and in the garage. This 20% solution is really to fill that gap and provide customers more confidence to buy the EV and take the extra step.”
Still, not every driver has access to home or workplace charging, and public infrastructure remains a work in progress. As of August 2025, there are just under 2,000 public charging stations in North Carolina, excluding Tesla chargers, according to the U.S. Department of Energy. “The technology is constantly improving,” Constantineau observed. “Right now, we’re just throwing a pretty big band aid on a problem that’s occurring in the Southwest.”
Other companies are joining the push. Ionna, a partnership between eight of the world’s leading automakers, has launched similar “Rechargeries” in Garner and Apex, aiming to make long-distance electric travel more practical across the state. The expansion of charging networks is happening just as the federal tax credits that helped fuel EV adoption are set to expire, adding yet another layer of uncertainty.
For Koulomb, the changing policy landscape is a cause for concern, but not enough to slow their ambitions. “We got involved in this business because we drive EVs, and we just believe it to be the better technology,” Constantineau said. “It’s more fun to drive. They don’t break down, the cost of ownership is super low… we believe in the technology.”
Koulomb currently operates nine charging stations across the southeastern U.S., including North Carolina, Virginia, and Georgia. The company plans to build two more charging depots and two smaller stations with four spaces each before pausing to assess customer feedback. “We’re going to build two more [depots],” Constantineau said. “I think we’ll build another two that aren’t depots, that are just kind of four spaces, and then we’ll probably pause for a little while and just watch customer feedback.”
With the end of the $7,500 federal EV tax credit looming, many industry watchers are bracing for a period of uncertainty. Will consumers continue to flock to EVs as prices rise and incentives disappear? Or will the market stall, waiting for the next policy shift or technological breakthrough? One thing is clear: the transition to electric vehicles is accelerating, but the road ahead is anything but smooth.
As the clock ticks down on federal incentives and tariffs threaten to push prices even higher, both automakers and consumers are facing a new era of tough choices. For now, the race is on—to buy, to build, and to adapt—before the landscape shifts once again.
