Subaru Solterra EV Sales Plummet 98.8% in October After Federal Tax Credit Ends

Subaru Solterra EV Sales Hit Rock Bottom in October, Plummeting 98.8% After Federal Credit Ends

Subaru Solterra EV sales plummeted by a staggering 98.8% in October 2025, with the company managing to sell only 13 units compared to 1,078 units in the same month last year. This dramatic collapse, following the lead of sharp declines experienced by Kia and Hyundai, underscores the immediate and profound impact of the expired $7,500 federal EV tax credit on EV adoption in the U.S. market. The timing, which coincided with the transition to the comprehensively updated 2026 model, suggests that incentives were the primary driver of the Solterra’s initial sales success.

Sales Collapse and the Tax Credit Factor

The Solterra’s sales figures show a precipitous fall that raises serious concerns for Subaru’s EV growth trajectory.

• Massive Decline: Subaru sold only 13 units of the Solterra in October 2025, compared to 1,078 units in October 2024, representing a 98.8% drop.
• Transition Effect: This sharp decline follows September’s sales of 443 units. The transition to the 2026 model year, whose pricing was announced just days before the end of September, may have temporarily impacted the availability of the EV.
• Incentive Dependence: The magnitude of the decline, far exceeding the drops seen by competitors like Kia and Hyundai (who saw declines over 50%), suggests that the $7,500 tax credit drove a major portion of the Solterra’s sales volume. Previous surveys indicate that incentives over $5,000 play a “significant role in motivating people to buy EVs”.

The Improved 2026 Subaru Solterra

Despite the dismal sales figures, the 2026 Subaru Solterra is a significantly improved vehicle.

• Enhanced Range and Power: The range on a full charge is up by 25%. A new XT derivative produces 338 horsepower.
• Charging and Tech: Charging speeds have increased, the styling has been sharpened up, and the interior gains a new 14-inch touchscreen interface.
• NACS Access: Subaru has added Tesla Supercharging access for the 2026 Solterra, with a NACS charging adapter available soon for previous model years.
• Platform Sharing: The related Toyota bZ EV (previously bZ4X) received similar updates for 2026.

Worrying Trend for Subaru’s EV Future

The Solterra’s performance casts a shadow over Subaru’s ambitious EV expansion plans.

• Future EVs: Subaru plans to launch the smaller Uncharted EV early next year, expected to start around $34,000, making it one of the most affordable new EVs in the country. The company also has the larger Trailseeker EV coming in 2026.
• Growth Challenge: Moving only 13 units in October is highly worrying for Subaru’s EV growth, demonstrating that even significant product improvements may struggle to match previous sales highs without external financial incentives.
• Market Test: Subaru Solterra EV sales in November will be critical, revealing whether the decline was purely a transitional issue or a deeper problem rooted in the loss of the tax credit.

Final Thoughts

The collapse of Subaru Solterra EV sales in October serves as a stark warning to all automakers: in the current U.S. market, EV sales are highly fragile and dependent on financial incentives. While the 2026 Solterra is technically superior, its performance in the post-credit era confirms that a challenging period lies ahead for EVs unless manufacturers can “match previous sales highs” through more aggressive price cuts or innovative incentive models.

Also Read – 2026 Lexus RZ Gains NACS & Plug-and-Charge as Standard, Boosting EV Convenience