Despite Trump's influence, U.S. dealers remain pessimistic about electric vehicle sales.

• U.S. car dealers are experiencing "renewed optimism" heading into 2025, thanks to the election of Donald Trump and positive trends in interest rates, according to Cox Automotive.
• According to Cox's "Q4 2024 Dealer Sentiment Index," dealers aren't feeling more optimistic about the sale of EVs after the U.S. presidential election in November.

Dealers are not more optimistic about the sale of electric vehicles, according to Cox's "Q4 2024 Dealer Sentiment Index," which is based on surveys of dealers after the U.S. presidential election in November.

Cox reports that the forecast for EV sales in the upcoming months has deteriorated, with many dealers predicting a decline in sales during the next quarter. There is apprehension that the new administration's policies may not aid an already precarious industry.

The Trump administration may implement changes in policy that could reduce federal funding for promoting electric vehicles (EVs), such as eliminating the current consumer credit of up to $7,500 for purchasing an EV, and relaxing fuel and emissions regulations.

"According to Cox Chief Economist Jonathan Smoke, the tax credits are effective in both new and used markets, as evidenced by clear feedback. However, the situation may change quickly next year, and the diminishing outlook is linked to the at-risk status of the EV tax credits."

The national dealer population is reflected in the weighted dealer responses, which are based on dealership type and sales volume. An index is calculated using data, with a number over 50 indicating that more dealers view conditions as strong or positive rather than weak or negative.

The auto market is expected to be stronger in the next three months, as indicated by the significant increase in the index, which stood at 41 one year ago, one of the lowest readings in its history, according to Cox.

Although the market index score of 42 suggests that a majority of dealers still view the current retail auto market as weak, Cox noted, this score is slightly better than one year ago but remains below pre-pandemic norms and long-term averages.

"The resolution of political uncertainty after the presidential election has paved the way for a more optimistic outlook on the future auto market, according to Smoke. Additionally, the possibility of supportive measures such as tax rebates and lower interest rates has boosted dealers' confidence in the road ahead as we move into 2025."

In the aftermath of the November election, only 35% of surveyed dealers reported that the political climate in the U.S. was affecting their businesses, a substantial decrease from the 44% of all dealers and 49% of franchised dealers who made the same claim in the previous quarter.