One in ten cars sold in 2024 in the United States were electric, with Virginia’s state specific numbers matching the national trend. (Adobe Stock)
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By Zamone Perez
Sep 10, 2025
In the Commonwealth, electric vehicles represented 31% of all cars sold in the first few months of 2025, that’s compared to just 23% in 2024. While China has widened the gap in the electric vehicle market, leading production and exports, one report finds that the U.S. could close the gap. But experts warn plans to end federal tax credits for people who buy electric vehicles at the end of September could hinder U.S. competitiveness in the electric car market.
Katherine Yusko, research analyst at the American Security Project, said the private sector can be restrained in its efforts if their products keep drawing the ire of politicians.
“The government has major influence over the course of this industry, and has the capacity to help the private sector jump forward even further,” she explained. “The private sector can only do so much if demand is being suppressed in the in the United States, if E-Vs are being politicized, if you have the president essentially talking them down.”
Republican lawmakers have regularly resisted tax credits for electric vehicles, arguing the market should decide what cars Americans purchase. Ending the tax incentives also helped pay for President Trump’s income tax cuts for the highest earners in the country.
“China currently controls 62% of the global electric vehicle market, producing eleven times the number of electric cars than the U.S. From 2009 to 2023, China invested $230 billion in subsidies into its electric vehicle industry,” she continued. “That includes sales tax exemptions and buyer rebates.”
Yusko said electric vehicle tax credits played a major role in expanding EV adoption across the U.S. Those tax credits’ ending, she explains, will likely slow down the market at home.
“The removal of these credits is really going to slow down domestic demand for EVs, and as a result, automakers are going to be unable to use the domestic market as as a platform to expand into the international market, which will lead to the U.S. seeing reduced market share in auto markets around the world,” she concluded. “This market share will likely be picked up by China, of course.”