Ford EV Sales Drop After Key Federal Tax Credit Ends

Ford Motor Company is seeing a meaningful slowdown in electric-vehicle (EV) retail activity after a major federal tax incentive for certain models expired. Dealerships and buyers reacted quickly when the credit lapsed: some buyers deferred purchases to wait for alternative incentives or new models, while dealers adjusted pricing and promotional offers to move existing inventory.

Industry analysts say the loss of the tax credit has an outsized effect on mid-priced EVs, where the incentive often made the difference between parity with combustion-engine alternatives and higher out-of-pocket costs. Manufacturers that had relied on government support to stimulate demand now face the challenge of sustaining momentum through price adjustments, financing deals and expanded lease offers.

For Ford, the immediate impact shows up in slower showroom traffic for its EV lineup and pressure on incentive spending. The company will likely weigh several levers to stabilize sales: temporary price cuts, factory-order incentives, dealer bonuses, and targeted marketing to cost-sensitive buyers. At the same time, Ford competitors with models that still qualify for incentives or that enjoy stronger brand loyalty may capture buyers who are reassessing trade-offs.

Beyond short-term sales dynamics, the episode highlights the sensitivity of EV adoption to public policy. Tax credits and rebates are designed to reduce consumer costs and accelerate the transition to electrification; when those supports change, market behavior can shift rapidly. Automakers are increasingly strategic about supply-chain sourcing and model eligibility to preserve access to subsidies, but policy shifts can still leave interim gaps.

Looking ahead, Ford’s response will determine how quickly it can regain momentum. If the company offsets the lost incentive with competitive pricing and financing, demand could normalize. If not, inventory builds and promotional spending could pressure margins. For investors and consumers, the case underscores that EV market growth remains closely tied to a mix of product competitiveness, dealer execution and government policy.