EV Market Shifts: Southeast Sales Surge Despite Federal Policy Changes

As the Trump Administration’s policies foster skepticism towards electric vehicles (EVs), many automakers are scaling back their immediate plans for EV production, even though consumer demand for these vehicles remains robust.

The Southern Alliance for Clean Energy (SACE) and Atlas Public Policy have released an updated year-end report on 2025 Transportation Electrification in the Southeast. This update follows their original report from September, offering refreshed data through the end of 2025.

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The national EV market is experiencing fluctuations, driven by rapidly changing federal policies that are expected to continue affecting the industry into 2026. The Trump Administration’s repeal of Biden-era EV tax credits and incentives has reversed a four-year surge in domestic EV investments, affecting jobs, particularly in the Southeast. This policy shift, combined with tariffs, inflation, and international conflicts, has led to increased manufacturing costs and higher prices for new vehicles, with the average price exceeding $50,000 by December. Despite these challenges, 2025 was the second-best year for EV sales in the U.S., nearly matching the 1.3 million EVs sold in 2024.

Progress and Setbacks in the Southeast

The updated data for the Southeast in 2025 highlights notable trends:

• The Southeast achieved a record in EV sales with 77,770 passenger EVs sold in the third quarter and an EV market share surpassing 10%. However, sales dropped to 44,000 in the fourth quarter after the expiration of the federal clean-vehicle tax credit. December data indicates a potential rebound in sales.
• In 2025, the region saw $5.5 billion in investment and 4,700 jobs canceled, while new announcements amounted to $3.2 billion and 1,400 jobs, resulting in a net loss of $2.3 billion in investment and 3,300 jobs.

Regional Progress in Sales, EV Charging, and Utility Investment

Sales

In 2025, the Southeast saw a 33% increase in EV sales compared to the previous year, with a record-breaking third quarter. The Trump Administration’s abrupt end to federal clean-vehicle tax credits prompted a surge in sales, a phenomenon known as “pull forward sales,” as consumers rushed to benefit from the expiring incentives. However, this led to a decline in fourth-quarter sales, although early data from December suggests a potential uptick ahead.

EV Charging

In 2025, public EV charging infrastructure experienced a 24% growth nationwide, though the Southeast remains behind the national average in terms of public EV chargers per capita. This gap underscores the necessity for increased investment to meet rising demand.

Expanding EV charging infrastructure is vital due to two primary reasons:

1. Despite over 80% of charging occurring at home, the average EV range of 300 miles necessitates reliable fast chargers along highways and Level 2 chargers at destinations for long-distance travel.
2. Consumers frequently cite battery range and charging accessibility as major concerns, and seeing more public charging stations can alleviate these worries.

Utility Investment

Investor-owned utility investments saw a 14.2% increase, which helps sustain market momentum amid declining public funding for EV infrastructure. Utilities play a crucial role in deploying charging infrastructure and preparing the electric grid to handle EV demand. Despite this growth, Southeastern utilities trail the national average in EV-related investments by 65.2%.

Regional Setbacks

The Trump Administration’s policies have adversely affected private-sector EV-related investments and jobs. In 2025, the Southeast faced a net decrease of $2.3 billion in announced investments and a loss of 3,300 jobs. This setback comes despite the region’s significant investments in EV manufacturing, research, and workforce training.

“As a result of this ecosystem buildout, as of the end of 2025, states in the region have attracted 41% of the nation’s private-sector EV-related investment and 35% of anticipated jobs, making the transition to electric transportation arguably the largest economic development play in the histories of Georgia, North Carolina, South Carolina, and Tennessee. These states are now deeply intertwined with the success or failure of the American EV market. It will be interesting to see how the tensions between local economic development and national politics play out in the mid-term elections, where the strength of the nation’s economy will be on the ballot, and the expectation of promised EV, battery, and supply chain manufacturing jobs will be on the minds of many Southeastern voters.”

State Highlights from the End-of-Year Report

The following state-specific insights are derived from the year-end Transportation Electrification in the Southeast report:

Alabama

• Alabama reached a new peak in passenger EV sales in Q3 2025, exceeding a 4% market share for the first time, yet it still trails behind other states in the region.
• A $30 million EV Training Center is set to open in Limestone County in Q1 2026 to meet the workforce needs of local automakers and suppliers.

Florida

• Florida leads the Southeast in passenger EV sales, reaching a 12.8% market share in Q3, surpassing the national average. By the end of 2025, Florida had sold over half a million passenger EVs.
• In 2025, Florida’s charging network expanded by 25% through private and utility investments, although fast-charging availability remains below the regional average.

Georgia

• Georgia announced nearly $27.1 billion in EV and battery manufacturing investments, creating 26,430 potential jobs, despite a $1 billion reduction in state investments in 2025.
• The Georgia Public Service Commission continued support for EV infrastructure funding, including the Make Ready program and a new Vehicle-to-Everything pilot program.

North Carolina

• North Carolina redirected some NEVI funds to rural communities after changes in charging station spacing requirements. It is the only state in the region to utilize all its NEVI funds.
• The North Carolina Utilities Commission extended Duke Energy’s electric school bus vehicle-to-grid pilot through June 2026, allowing more time for evaluation.

South Carolina

• South Carolina led the region in charging deployment growth, increasing its fast charger port count by 67%.
• Despite a decline in EV manufacturing announcements, companies like Redwood Materials and AESC continued their investments in the state.

Tennessee

• Tennessee experienced significant investment cancellations in 2025, including Ford’s shift from EV to gas-powered truck production at its BlueOval campus.
• After NEVI funding was unfrozen, Tennessee refocused on advancing contracts and starting construction on charging sites in 2026.

Looking Down the Road

Despite political challenges, the national EV market shows strong momentum with several indicators pointing towards continued growth and consumer interest:

1. EV owner satisfaction has reached its highest level since 2021, with 96% of owners considering another EV purchase, according to JD Power’s 2026 study.
2. 59.7% of new-vehicle shoppers express a likelihood of purchasing an EV, indicating ample opportunities for automakers adapting to market changes.
3. The used EV market is expanding with 243,000 EV leases ending in 2025, providing more affordable options for consumers priced out of the new-vehicle market.
4. Globally, EV sales surged to over 20 million units in 2025, with a market share of 25%, highlighting the competitive pressure on American automakers.

The EV market is poised for continued advancement, with high consumer satisfaction, growing interest, and expanding global sales driving momentum into 2026. The key question remains whether the U.S. will embrace this shift and reclaim its leadership in the automotive industry.