The U.S. EV market sees falling prices, record buyer incentives, and a Tesla sales dip amid leadership changes, while the UK introduces up to £3,750 EV discounts sparking policy debate.
EV Market Crossroads: U.S. Prices Drop, UK Offers New Discounts, Tesla Faces Pressure
The electric vehicle (EV) sector is navigating turbulent waters in mid-2025. In the U.S., EV prices and incentives are hitting new lows and highs, respectively, yet overall sales have declined. Across the Atlantic, the UK government has launched fresh EV discounts—drawing mixed reactions about fairness and impact.
U.S. EV Market in Q2 2025: Discounts Surge, Sales Dip
In June 2025, the Average Transaction Price (ATP) for a new EV in the U.S. fell to $56,910, down from $57,236 in May. At the same time, buyer incentives rose to a record 14.8%, offering over $8,400 in savings. This spike in incentives came despite policy changes like President Trump’s “Big Beautiful Budget” bill that ended federal EV tax credits—indicating that automakers and dealers are shouldering the discounts to stimulate demand.
Still, EV sales dropped 6% YoY in June, revealing a challenging demand environment even with aggressive pricing.
Tesla’s U.S. Sales & Leadership Shakeup
Tesla, despite a 12.6% YoY decline in U.S. sales (143,535 vehicles), maintains a 44.7% YTD EV market share. However, the company is grappling with internal upheaval:
- Troy Jones, Head of Sales North America, and Omead Afshar, a key Musk aide, have both exited.
- Elon Musk has taken over direct sales leadership for the U.S. and Europe.
Musk’s political tension with Trump and falling sales have triggered investor concerns, prompting a shareholder meeting scheduled for November 6, which will likely scrutinize his $56B pay package and discuss calls for a Tesla–xAI merger vote.
According to Benzinga’s Edge Rankings, Tesla scores:
- Growth: 90.93 (Strong)
- Momentum: 45.01 (Satisfactory)
- Quality: 51.60 (Satisfactory)
- Value: 10.25 (Poor)
UK Offers Up to £3,750 Off New EVs
The UK government has launched a new incentive scheme offering up to £3,750 off new electric cars, aimed at lowering upfront costs and boosting adoption. However, critics say it mainly benefits higher-income buyers, especially those using corporate capital allowances, with limited impact on broader uptake.
Conclusion: Opportunity Meets Uncertainty
The global EV market is clearly in flux—U.S. buyers enjoy record incentives but remain hesitant, Tesla is under strategic and leadership pressure, and the UK’s new subsidies face public scrutiny. Whether these moves will reignite growth or deepen the divide between policy, affordability, and consumer trust remains to be seen.