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Surge in Electric Vehicle Sales Ahead of Tax Credit Expiration

Electric vehicles displayed at the Orange County Auto Show

News Summary

Sales of electric vehicles (EVs) are booming as buyers rush to take advantage of federal tax credits before they expire. The Orange County Auto Show is witnessing high interest, with many shoppers eager to test drive models like the Ford Mustang Mach-E. EV sales surged to 32% in July in Orange County, and experts predict a decline post-September. Market dynamics are shifting as hybrid vehicles gain traction, amidst growing concerns over dwindling tax incentives. The auto show highlights a range of options as buyers make their decisions.

Anaheim, California – Sales of electric vehicles (EVs) are accelerating as shoppers flock to take advantage of a $7,500 federal tax credit for new EVs and a $4,000 credit for used models before they expire on September 30. This surge in interest is particularly evident at the Orange County Auto Show, which is ongoing from Thursday to Sunday, where potential EV owners are lining up for test rides.

John Sackrison, the executive director of the Orange County Automobile Dealers Association, has observed a remarkable spike in sales as consumers rush to make purchases ahead of the tax credit deadline. Before the announcement that the tax credits would expire, approximately 21% of new vehicle sales in Orange County were electric. However, that figure climbed to 32% in July following the announcement, indicating a significant trend toward electric vehicles in the region.

Nationally, there has been a similar uptick, with EV sales rising by 19% in July compared to the previous year. Forecasts from J.D. Power suggest that EVs could soon represent over 12% of total vehicle sales across the country. The anticipation of these incentives leading to a buying frenzy has also resulted in dealers reporting extraordinary sales numbers, for example, Cadillac of Beverly Hills noted that electric vehicles now comprise two-thirds of their new vehicle sales.

At the Orange County Auto Show, attendees like Corinne Lawson and her husband were observed taking test drives of electric models such as the Ford Mustang Mach-E, which Lawson was considering for its spacious backseat, suitable for her grandkids. Shoppers from various areas, including Murrieta, are expressing urgency to make a decision on potential electric models due to the looming tax credit expiration.

While the present enthusiasm for EVs piles up, analysts predict a significant decline in EV sales may happen in October once the tax credits are no longer available, cautioning against a possible “hangover” effect from the summer’s rush. Some potential buyers, including Stacey and Jim Palma from Long Beach, have started to reconsider their options, shifting away from EVs due to the loss of tax incentives and are now exploring more budget-friendly hybrid vehicles.

In addition to the challenge posed by the expiring tax credits, California is witnessing an upswing in interest in hybrid vehicles, which accounted for 19.2% of the market in the first half of 2025, marking a 54% increase from the previous year. Relevant to this evolving market dynamic, EV Mobile Charge OC has launched a fully mobile EV charging service in both Orange County and Los Angeles, recently closing a $12 million Series A funding round to expand its fleet of charging vans.

The Orange County Auto Show itself features a wide array of vehicle categories from over 27 automakers, highlighting new electric, hybrid, and traditional vehicle options. Attendees can discover the all-new Nissan Leaf along with various hybrid models that may become increasingly appealing options once the tax credits are phased out. The show is being held at the Anaheim Convention Center, complete with special operational hours and ticket pricing, and offers convenient on-site parking.

As the auto show continues, the importance of these emerging trends in EV and hybrid vehicle sales is underscored by the impending expiration of government subsidies, shaping the decisions of buyers across Orange County and beyond.

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Surge in Electric Vehicle Sales Ahead of Tax Credit Expiration

STAFF HERE CORONADO
Author: STAFF HERE CORONADO

The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

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