WSJ Tech News Briefing | "Will EV Sales Stall or Surge in 2026?"

Date: December 26, 2025
Host: Isabel Bousquette
Guests: Imani Moise (Personal Economics Reporter), Ryan Felton (Autos Reporter)

Episode Overview

This episode explores the uncertain future of electric vehicle (EV) sales in the U.S. as 2026 approaches, with a focus on the recent elimination of a major $7,500 federal tax credit and its significant impact on consumer demand and automaker strategies. The discussion covers how we got here, the key hurdles for EV adoption, and what needs to change for EVs to become truly mainstream.

Key Discussion Points & Insights

1. The Arc of EV Adoption in the U.S.

[01:49–03:36]

• Early Introduction: Ryan Felton traces early American exposure to EVs back to GM’s EV1 in the 1990s, but emphasizes the true boom only came in the last 10–15 years with Tesla’s rise.

  • “The shortest, simplest answer is there was some attempts at making EVs a long time ago… but really in a big way, the American consumer didn't really get to know EVs until the past 10 to 15 years when Tesla took off.” – Ryan Felton [01:57]

• Federal Incentives: The federal tax credit, especially as broadened under the Biden administration, played a crucial role in making expensive EVs more accessible.

  • Notable quote:

    “There were higher priced, sometimes luxury vehicles that could be sold with several thousand dollars taken off the price… that really helped juice EV sales to at one point was 10, 12% of the market.” – Ryan Felton [02:31]

2. After the Tax Credit: A Shift in Sales and Sentiment

[03:36–06:21]

• End of the Boom: The market confidence that EVs were “the future” has waned with the tax credit’s elimination. Automakers are pivoting more toward hybrids and even gas-powered models.

  • “It’s safe to say that just this sort of environment where EVs seemed poised to be the future… that's done, at least for the foreseeable future.” – Ryan Felton [03:46]

• Sales Impact: Imani Moise notes a dramatic 30% year-over-year decline in EV sales in October 2025—the first full month without the tax credit.

  • “Maybe there was a better market for a tax write-off than there is for these EVs…you saw EV sales hit a record high… but just in October… a 30% year over year decline in EV sales.” – Imani Moise [04:40]

• Pricing Anomalies: Some states and dealers, like in Colorado, had outrageously low EV lease deals when both state and federal incentives overlapped.

  • Notable moment: Felton recalls “a dealer essentially did a zero dollar a month lease on a particular Fiat electric car” [05:27].

3. What’s Holding Consumers Back from EVs in 2026?

[07:18–09:37]

• Charging Logistics: Lack of home or convenient charging is a primary factor, especially problematic for those living in apartments or planning long trips.

  • “The number one question that you should ask yourself is do you have the space at home to charge?” – Imani Moise [07:18]

• EV Ownership Costs: Despite gas savings, AAA’s analysis shows EVs cost about $1,700 more per year to own (mainly due to higher sticker prices, insurance, and rapid depreciation). Strip away depreciation, and operating costs are $400/year less than gas cars.

  • “Based on the latest report for 2025… Electric vehicles are on average $1,700 more a year to own compared to gas cars.” – Imani Moise [08:36]

• Used EV Market: More buyers are turning to used EVs since new ones lose value quickly, and operating costs for used EVs are notably cheaper.

• Technological Obsolescence: Rapid advances in EV tech make even recent models feel outdated, creating buyer hesitation.

4. Automakers’ Recalibration

[10:15–11:48]

• Production Cutbacks: Automakers like GM and Ford are scaling back EV production to match post-incentive demand.

  • “We've already seen some companies start dialing back production plans… basically you’re just going to see companies scaling back production until they really understand what the new, not artificially driven up demand actually is.” – Ryan Felton [10:32]

• Upcoming Models: Despite scaling back, some low-cost models are planned (e.g., $30,000 EV pickup from Ford, new Chevy Bolt in the high $20,000s).

5. The Roadblocks to Mainstream EV Adoption

[11:56–13:45]

• Infrastructure Gaps: Both guests agree that insufficient, unreliable charging infrastructure remains the top deterrent. Long trips are still a headache.

  • “The main thing is charging… it just really is an added extended amount of time that you have to bake in on a longer trip if you're going to pull it off.” – Ryan Felton [11:56]

  • “It's going to be a huge challenge to really win over more customers… until you actually have more options that are in the price bands that most consumers would consider a new car.” – Ryan Felton [12:37]

• Skilled Labor Shortage: Repairs and servicing EVs require specialized workers, meaning long trips for service—or long waits—are a frustration for owners.

  • “You drive to your local Ford dealer and they’re like, oh, well, we don’t have a guy who's trained in EVs. You have to drive 45 to 60 miles to this specific dealership to service this car.” – Imani Moise [13:26]

• Affordability: Consumers have shown they’ll buy EVs at the right price; dropping prices or new incentives could reignite demand.

Notable Quotes & Memorable Moments

• “Maybe there was a better market for a tax write-off than there is for these EVs.” – Imani Moise [04:40]
• “A dealer essentially did a zero dollar a month lease on a particular Fiat electric car.” – Ryan Felton [05:27]
• “The main thing is charging… until that's commonplace, it's going to be a huge challenge to really win over more customers.” – Ryan Felton [11:56]
• “As they become more mainstream, there just needs to be a critical mass, and we just haven't hit that yet.” – Imani Moise [13:37]

Timestamps – Key Segments

• Background & EV History: [01:49–03:36]
• Impact of Tax Credit Loss: [03:36–06:21]
• Consumer Hurdles in 2026: [07:18–09:37]
• Automaker Strategies Moving Forward: [10:15–11:48]
• What Needs to Change for Wider EV Adoption: [11:56–13:45]

Tone and Takeaways

The tone was analytical, fact-driven, and openly skeptical about the near-term future of EVs without renewed or alternative incentives. Both reporters emphasized that while technological and infrastructure improvements continue, mass adoption hinges on affordability, practical charging logistics, and broader industry adaptation.

This episode is a must-listen (or must-read!) for anyone curious about the fast-shifting landscape of electric vehicles and what it will take for them to truly become the norm in the U.S. auto market.