As the automotive market navigates the impact of fluctuating gas prices and shifting tax incentives, the electric vehicle (EV) sector is experiencing notable changes. Recent data from the Alliance for Automotive Innovation highlights the evolving landscape of EV registrations across the United States, revealing a mixed picture of decline and resilience.
With the cessation of the $7,500 U.S. tax credit for plug-in and hybrid models, 31 states and Washington, D.C. have reported decreased registrations of electric vehicles. However, ten states continue to show robust EV registration rates exceeding 10%, underscoring regional differences in adoption patterns.
The Alliance’s quarterly Get Connected report notes that EVs accounted for 9.6% of U.S. auto sales in 2025, marking a slight drop from the previous year’s figures. Specifically, in the three months following the end of the federal tax credit, EV sales constituted just 6.5% of total U.S. auto sales, a decline from 10% during the same period in 2024 when the tax credit was still active.
“As the industry transitions into this new phase, 2026 is shaping up to be a period of recalibration,” the group stated in its latest report. “Demand patterns are normalizing, manufacturers are adjusting production and pricing strategies, and the market is responding to evolving policy and economic conditions.”
This shift comes amid rising fuel costs, with the average price of gas reaching $3.99 on March 30, according to the AAA Auto Club, compared to a national average of $2.98 a month earlier. Data from Carmax indicates a 12.8% increase in searches for electric vehicles and hybrids on its platforms, suggesting growing consumer interest despite market challenges.
The USA TODAY Cars team examined states with the highest EV adoption rates heading into 2026:
California
2025 EV percentage: 23.9%
Change from 2024: -2.29%
The California Department of Transportation emphasizes its role in increasing zero-emission vehicles on state roadways, as outlined on their website.
Colorado
2025 EV percentage: 19.9%
Change from 2024: -2.74%
Colorado expects $57 million in federal funds to enhance its EV charging infrastructure, according to information on the state’s website.
Washington, D.C.
2025 EV percentage: 19%
Change from 2024: -0.92%
The District’s commitment to sustainability and reducing greenhouse gas emissions aligns with its electric vehicle initiatives as detailed on the Department of Transportation’s website.
Washington
2025 EV percentage: 19%
Change from 2024: -2.02%
The state’s strategy for reducing transportation emissions through EV adoption is described on the Washington Department of Transportation’s website.
Nevada
2025 EV percentage: 16.2%
Change from 2024: 1.18%
Nevada plans to use $38 million in federal funds for EV chargers, as stated on its Department of Transportation’s website.
Oregon
2025 EV percentage: 15.5%
Change from 2024: -0.54%
Oregon’s focus on electrifying transportation to cut greenhouse gases is detailed on the state’s website.
New Jersey
2025 EV percentage: 12.2%
Change from 2024: -1.82%
Efforts to tackle greenhouse gas emissions from vehicles in New Jersey are explained on the Department of Environmental Protection’s website.
Hawaii
2025 EV percentage: 10.8%
Change from 2024: -2.86%
Hawaii’s introduction of a road use charge for electric vehicles is discussed on their state website.
Massachusetts
2025 EV percentage: 10.6%
Change from 2024: -1.73%
The role of vehicle electrification in Massachusetts’ climate strategy is outlined on the state’s website.
Connecticut
2025 EV percentage: 10.4%
Change from 2024: -1.06%
Connecticut’s plans for wide-scale EV deployment to meet emission reduction targets are detailed on the Department of Transportation’s website.
Original Story at www.usatoday.com