An electric vehicle charging location is shown from the view of a drone in Carlsbad, California, U.S., as automotive executives anticipate a sharp drop in EV sales due to the elimination of a crucial $7,500 tax break for buyers. Ford CEO Jim Farley predicts EV sales to plummet to 5% of total U.S. vehicle sales, a significant decrease from the recent record-high levels. With the tax credit expired, automakers like Nissan are preparing for fierce competition as they struggle to find buyers for their electric cars in a market flooded with inventory.

Despite efforts by GM and Ford to mitigate the impact of losing the tax incentive, dealerships are adopting a cautious approach by reducing EV inventory. The U.S. market lags behind China and Europe in EV adoption, and the removal of the tax credit poses a challenge for dealers who fear being left with unsold EVs. While some remain optimistic about the future of EVs, concerns loom over the potential impact on sales of higher-priced models in the absence of government incentives.