Demand for electric vehicles was essentially flat in Oregon last year, a dramatic reversal after years of rapid growth. New state data shows that growth in registrations of new gas-powered cars outpaced growth in electrics for the first time in at least a decade.
The slowdown in electric vehicle sales coincides with the expiration of a $7,500 federal tax credit last year and declining sales at Tesla, the most popular electric vehicle brand in the U.S. Registrations of new Teslas in Oregon fell 5% last year.
The advent of electric vehicles sparked enormous interest in Oregon — helped along by state and federal government tax incentives that could shave thousands of dollars off the cost of a new electric car. Electric vehicle registrations grew at an annual rate of 28% between 2014 and 2024, according to data from the Oregon Department of Transportation.
By 2024, 1 in 7 new cars in Oregon was electric.
The market has slowed dramatically, though. Electric vehicle registrations in Oregon climbed by less than 9% in 2024 and less than 4% last year. Registrations fell off sharply in the last two months of the year, after the federal tax credit expired.
“We saw a rush to buy electric vehicles before the rebate expired and since then the registrations have been really low, but we expect them to rebound,” the Department of Transportation said in a written statement.
Oregon has an additional rebate program for electric vehicles, but demand for the rebates far exceeds available capital and the program typically operates for just a couple months each year.
State officials have said there are other factors, in addition to the expiring government incentives, behind the slowdown in electric vehicle growth. One consideration is that electric vehicles tend to be four-door cars rather than the trucks and SUVs many drivers prefer — especially in rural areas.
The electric vehicle market has also been constrained by drivers’ “range anxiety,” a persistent fear that a car’s battery will run out of juice far from any charging station. There are more than 75,000 charging stations nationwide — many more than just a few years ago — but fuel pumps remain far more prevalent.
Electric vehicles are still more popular in Oregon than nationwide. U.S. electric vehicle sales fell slightly last year, according to Cox Automotive, while they were up slightly in Oregon.
Tesla’s decline had a profound effect locally and globally. The company delivered 1.6 million electric vehicles in 2025, an 8% drop.
Tesla CEO Elon Musk alienated many potential customers with a series of inflammatory political comments and with his role in cutting thousands of federal jobs last year. But Tesla’s decline also reflects a shift in its priorities, away from conventional vehicles and toward self-driving cars that aren’t yet on the market.
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