J.D. Power Says Returning EV Lessees Double-Down, EV Consideration Surging, Lower Ownership Cost is Top EV Purchase Driver

According to the recent J.D. Power E-Vision Intelligence Report, the future of EV sales in the US is still bright, despite the loss of the federal EV tax credit. The report was released on November 7, 2025.

Consumer reaction to the repeal of the $7,500 federal EV tax credit has been immediate and dramatic. In October 2025, the first full month without the incentive, EV sales fell 53 percent and accounted for just 6.0 percent of all new vehicles sold, down from 12.9 percent in September.

The key question now is whether this drop signals a real shift away from EVs or simply a temporary correction after months of accelerated buying as shoppers rushed to claim the remaining credits.

J.D. Power data, which tracks sales, leases, sentiment, and ownership experience, paints a more nuanced picture. While the end of the tax credit will depress EV sales in the short term, the underlying market is far from collapsing. Several indicators point to continued long-term strength.

Current EV Owners Are Staying Loyal

A major factor overlooked in recent commentary is the loyalty of current EV lessees and owners. Many will return to the market within the next year, and most intend to stay electric. According to the 2025 U.S. Electric Vehicle Experience (EVX) Ownership Study, 94 percent of EV owners say they “definitely will” (79 percent) or “probably will” (15 percent) consider an EV for their next purchase or lease. With 243,000 franchise EV leases ending in 2026, a wave of returning customers is on the way. In 2025, 62 percent of returning franchise EV owners chose another EV.

EV Consideration Continues to Rise

Shoppers planning to buy or lease a vehicle in the next 12 months remain largely unfazed by the loss of federal incentives. In October, 59.7 percent said they were “very likely” (24.2 percent) or “somewhat likely” (35.5 percent) to consider an EV, an increase of 2.6 percentage points from September and the highest level since January.

EVs Still Deliver Strong Value

Customer satisfaction remains a key driver of EV demand. Current EV owners cite lower running costs, incentives, driving performance, purchase or lease value, and design as top reasons for choosing an EV. Although the end of the tax credit weakens part of that equation, EVs continue to outperform expectations on operating costs. Sixty percent of owners say their EV is much less expensive to own than a gasoline model, and another 26 percent say it is slightly less expensive. Only 7 percent report higher ownership costs.