Even with strong demand up until the federal tax credit expired, Hyundai’s EV sales crashed last month. Hyundai, Ford, Kia, and Honda sold significantly fewer EVs in October.

Hyundai EV sales drop in October as the tax credit ends

Hyundai is still on pace for its third straight record sales year in the US. The South Korean automaker sold 70,118 vehicles in the US last month, 2% fewer than it did in October 2024.

Although Hyundai sold a record number of “electrified” vehicles, it was hybrids that carried the growth in October. Several hybrid models set new October sales records, including the Sonata HEV and Elentra HEV. The Palisade also had its best October with the new HEV version now rolling out.

“Hybrid vehicles led the way in October with a 41% increase, and electrified sales were up 8%,” said Hyundai Motor North America’s CEO, Randy Parker.

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Fully electric vehicles, on the other hand, didn’t fare as well. Hyundai sold just 1,642 IONIQ 5s last month, down 63% from October 2024 and a stark contrast from the over 8,400 sold in September.

Sales of the IONIQ 6 fell 52% to 398, while Hyundai sold just 317 units of its three-row electric SUV, the IONIQ 9. Parker said that Hyundai saw “strong EV demand leading up to the expiration of the federal tax credits,” adding that the shift “has temporarily disrupted the market.”

Despite this, Hyundai’s momentum “remains strong,” and according to Parker, it’s still on pace for record retail and total sales in 2025. Parker said Hyundai is confident the EV market will reset following the policy changes.

Hyundai wasn’t the only brand with significantly lower EV sales following the expiration of the tax credits. Ford, Kia, and Honda all sold drastically fewer electric vehicles last month.

Although the tax credit expired, Hyundai is still offering big savings. After cutting prices on the 2026 IONIQ 5 by nearly $10,000 on some trims compared to the 2025 model, Hyundai’s electric SUV now starts at under $35,000.

Hyundai is also still offering the $7,500 credit for the 2025 IONIQ 5. So, why are EV sales collapsing? It’s likely due to the rush of buyers that flooded the market in the months leading up to the tax credit’s expiration.

Interested in trying out Hyundai’s electric vehicles for yourself? Tap the links below to find an IONIQ 5, IONIQ 6, or IONIQ 9 near you.

The interior featured a new Tesla-like infotainment screen at the center. A closer look at the new Hyundai IONIQ 3 reveals much more than just a massive new screen.

Leaked images reveal new Hyundai IONIQ 3 EV interior

The IONIQ 3 is set to arrive as a smaller, more affordable sibling to the IONIQ 5 as Hyundai expands its EV lineup.

Despite its compact size at just 4,287 mm long, Hyundai said the IONIQ 3 will set the tone for its next chapter with a fresh look and advanced new tech.

It will be one of the first models to run on Hyundai’s new Pleos software and infotainment system. The next-gen infotainment system features a smartphone-like UI, similar to Tesla’s, with a large touchscreen at the center.

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Hyundai’s new tech stack and software platform integrates everything under one roof, including the infotainment system and OS. The setup is not only easier to use but also unlocks new features such as autonomous driving and real-time data analysis.

We are finally getting a closer look at the new system after leaked photos surfaced online, revealing the IONIQ 3’s interior for the first time.

The images, courtesy of TheKoreanCarBlog (via SH Prohots), show the Tesla-like floating infotainment at the center of an otherwise minimalistic interior. Even the steering wheel resembles that of Tesla models.

Unlike Tesla, however, Hyundai still includes a driver display cluster and several physical buttons. Hyundai said the first vehicle with its new Pleos Connect infotainment system will arrive in Q2 2026, which is the same time the IONIQ 3 is expected to launch.

If you look at the vehicle displayed on the screen, it appears to be the updated Grandeur, Hyundai’s flagship sedan. Hyundai is expected to reveal the Grandeur facelift later this year or in early 2026.

Hyundai previewed the IONIQ 3 in September, unveiling the Concept THREE at the Munich Motor Show. The IONIQ 3 is Hyundai’s first compact model under its IONIQ EV series.

It features Hyundai’s new “Art of Steel” design, inspired by advanced steel technologies. According to Hyundai, the Aero Hatch profile is “a new typology that reimagines the compact EV silhouette.”

The concept featured a customizable, futuristic interior design with “hidden surprises” throughout, but it will look more like the images above when it arrives next year.

Hyundai will begin IONIQ 3 production at its manufacturing plant in Turkey in Q2 2026. It will sit between the Inster EV and Kona Electric in Hyundai’s European lineup.

At 4,287 mm long, 1,940 mm wide, and 1,428 mm tall, with a wheelbase of 2,722 mm, the Concept Three is about the size of the Volkswagen ID.3 and Kia EV3.

We will learn final specs and prices closer to launch, but the IONIQ 3 is expected to be available with 58.3 kWh and 81.4 kWh battery packs, like the Kia EV3. The former provides a WLTP range of 260 miles, while the latter is rated at 365 miles.

The Hyundai Kona Electric starts at £34,995 ($47,000) in the UK, so the IONIQ 3 is expected to be priced closer to £25,000 ($33,700).

How do you feel about the new interior design? Do you like the changes? Or should Hyundai stick with the dual 12.3″ screens on current EV models, like the IONIQ 5? Drop us a comment below and let us know your thoughts.

Source: TheKoreanCarBlog, SH Proshots

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Tesla has reportedly secured another major battery supply partner, but it’s not for the product you might think.

According to a new report from the Korea Economic Daily, Tesla has reached a substantial agreement with Samsung SDI. The deal is said to be worth over 3 trillion won (approximately $2.1 billion) and will see the South Korean battery giant supply cells to Tesla over a three-year period.

But here’s the key part: This supply is reportedly for Tesla’s Energy Storage System (ESS) business.

That means these cells are destined for Megapack and possibly Powerwall products, not for Tesla’s electric vehicles.

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The report, which cites an unnamed battery industry source, marks the first large-scale supply agreement between Samsung SDI and Tesla. For years, the two companies have been in talks, with most speculation centered on Samsung building 4680 cells, a cell format Tesla pioneered. While Samsung is indeed ramping up its own 46-series cell production, this new deal appears to be focused entirely on LFP cells for stationary energy storage.

When reached for comment, Samsung SDI officially stated that “nothing has been finalized yet,” which is a common response to such reports before a deal is formally announced. Tesla has not commented.

This new deal with Samsung SDI follows another massive ESS battery agreement Tesla signed with a different South Korean supplier, LG Energy Solution, for lithium-iron-phosphate (LFP) batteries. Currently, Tesla exclusively uses cells from CATL and BYD for its energy storage products, but the company recently noted a bed to diversify supply due to the tariffs put in place on Chinese products.

Tesla has also been working on deploying its own LFP battery cell manufacturing in the US to partially offset Chinese supply.

Electrek’s Take

The company’s energy storage division has been a silver lining amid two years of decline in its EV division.

The growth has been impressive despite increased competition.

It’s the only segment where Tesla is truly production constrained, and more specifically battery supply constrained rather than demand constrained.