The Worldwide EV Report 2025

The costs and incentives of electric vehicles around the world

Electric vehicles (EVs) continue to grow in popularity in the U.S., but the national policy environment has shifted under the Trump administration.

In January 2025, President Trump revoked the 2021 executive order that had set a target for 50% of new cars to be electric by 2030. While the order was largely symbolic and not legally binding, its cancellation signaled a clear federal policy shift away from supporting rapid EV adoption. In fact, many people have already adopted electric cars and are using them to learn to drive.

At the same time, questions remain about federal funding for EV charging infrastructure. Programs like the $7.5 billion NEVI initiative have been under review, and although funds have not been universally frozen, disbursements have slowed significantly. As of mid-2025, fewer than 400 federally supported public charging ports were operational nationwide — far behind initial rollout expectations. Several states have also sued the federal government over delays and withheld funds.

Despite these setbacks, state-level policies and private investment are keeping momentum alive. California, New York, and Massachusetts continue to enforce ambitious zero-emission vehicle mandates, including bans on new gas-powered car sales by 2035. California alone represents nearly 40% of all U.S. EV sales, supported by rebates, tax credits, and one of the country’s most extensive charging networks. Meanwhile, companies like Tesla and Electrify America are still expanding charging infrastructure independently of federal programs.

In short: while federal leadership on EVs has cooled in 2025, the U.S. EV transition is still progressing — powered by state mandates, local incentives, and private-sector growth.Meanwhile, within the European Union, the ban on new internal combustion (ICE) vehicles is scheduled for 2035. However, discussions are ongoing about how strict to maintain the transition rules, as member states balance automotive industry pressures with climate goals.

The best countries to own an EV

1. The United States EV score: 9.66

Taking the top spot, the US offers the world’s most popular EV, the Tesla Model 3, at the lowest price, just over $39,990. The US also has one of the most generous incentives for EV purchases, placing in the top five for the factor.

2. Norway score: 7.33

Norway takes the top spot for the highest proportion of EVs, with 24.23% of its vehicle fleet now electric. However, it offers the lowest purchase incentives compared to other leading countries, showing that strong adoption can still be driven by policies such as high taxes on petrol and diesel cars and exemptions for EVs.

3. France EV score: 7.16

In third place is France, scoring 7.16 in our index. The country stands out for its generous purchase incentives, with the French government offering drivers more than $7,000 off the price of a new EV.

The countries with the best tax incentives to buy an EV

1. Germany $9,749.84

Germany tops the list with the most generous incentive for buying an EV, offering a rebate of just over $9,700. In addition, buyers benefit from reduced VAT rates on electric vehicles, and EVs are exempt from several vehicle taxes, making Germany one of the most supportive countries for EV ownership.

2. Greece $9,365.04

Taking second place is Greece, where motorists can receive over $9,300 in subsidies toward the purchase of an EV. Alongside these financial incentives, the Greek government is also investing in expanding the country’s charging infrastructure, helping to make EV adoption more practical and widespread.

3. Spain $8,194.27

Spain secures third place with incentives worth more than $8,100 for new EV purchases. The country’s support measures are complemented by regional grants and a growing network of charging stations, making EV ownership increasingly attractive for Spanish drivers.

The countries with the highest proportion of EVs

1. Norway 24.23%

Taking the top spot once again is Norway, where nearly a quarter of all vehicles are now electric. The country has driven this transition by heavily taxing petrol and diesel vehicles while keeping EVs exempt from such charges, making them the most practical option for drivers. Norway continues to lead the global shift and is on track with its plan to ban the sale of all new polluting vehicles by 2025.

2. Denmark 14.07%

In second place is Denmark, where over 14% of the vehicle fleet is fully electric. Denmark’s ambitious climate policies, combined with generous purchase incentives and widespread charging infrastructure, have made EVs increasingly popular with drivers across the country.

3. Iceland 9.54%

Taking third place is Iceland, with nearly 10% of its vehicles now fully electric. Iceland’s cheap renewable electricity, high gas prices, and concentrated urban population have created ideal conditions for EV adoption. This strong uptake demonstrates how local infrastructure and energy resources can accelerate the transition to clean transport.

The cheapest countries to buy an EV

1. Norway 153.99% of average income

Norway takes the top spot, with citizens paying just over 1.5 times the average annual salary for a Tesla Model 3. EV motorists in Norway can expect to pay around $36,000 for a new Tesla, making it relatively affordable compared to incomes in many other countries.

2. Luxembourg 160.07% of average income

In second place is Luxembourg, where a Tesla Model 3 costs just under $46,000 — equal to about 160% of the average income. With one of the highest average annual wages in Europe, Luxembourg’s purchasing power makes EV ownership more attainable than in most other countries.

3. United States 175.44% of average income

The United States ranks third, where a Tesla Model 3 represents roughly 175% of the average annual income. While Teslas are manufactured domestically, avoiding import duties, relatively lower median incomes compared to Europe mean that the purchase price still represents a higher share of earnings.

The best US states to own an electric vehicle

1.  Washington EV score: 7.69

Taking the top spot as the best state to own an EV is Washington. The Evergreen State performs strongly across multiple factors, ranking among the leaders for its proportion of EVs on the road, as well as its supportive charging infrastructure and incentives.

2. California EV score: 6.67

Up next is California, with a score of 6.67. As the largest EV market in the U.S., The Golden State is home to nearly 40% of all EV sales in the country, supported by generous state-level rebates and one of the most extensive charging networks nationwide.

3. Louisiana EV score: 6.53

In third place is Louisiana, scoring 6.53 in the index. The state’s low charging costs and growing EV adoption contribute to its strong ranking, making it one of the most affordable places in the nation to own and operate an electric vehicle.

The states with the highest charging station incentives

1. California and Indiana $2,500

As EVs are still a relatively new technology, the infrastructure needed to power them is way behind that of polluting vehicles, so it’s important that electricity companies offer incentives to speed up the process.

Sharing the top spot as the states with the highest incentives for installing a residential charging station are California and Indiana, both offering residents a rebate of $2,500 to install a charging station.

2. Connecticut, Wisconsin and Louisiana $1,000

Helping people install chargers in their homes across the nation is a key incentive in EV adoption, as charging at home during off-peak hours can unlock the full potential of electric vehicles for little more than the price of a fancy coffee.

Nobody knows this more than electricity providers in Connecticut, Wisconsin and Louisiana, both offering residents up to $1,000 in rebates to install charging stations in their homes.

The cheapest states to charge an EV

1. North Dakota $4.62

North Dakota takes the top spot as the cheapest state to fully charge a Tesla Model 3, at just $4.62 for a full 50 kWh battery. The state benefits from some of the lowest electricity prices in the nation, thanks to its diverse energy mix and strong focus on affordable power.

2. Wyoming $4.82

In second place is Wyoming, where it costs residents $4.82 to fully charge a Tesla Model 3. Wyoming’s low electricity tariffs make EV ownership especially economical, reinforcing its position as one of the most affordable states for charging.

3. Louisiana $5.12

Taking third place is Louisiana, where a full charge costs only $5.12. The state’s abundant energy production and low average electricity prices help keep EV charging costs among the lowest in the country.

The states with the highest proportion of EVs

1. California 4.05%

California takes first place with 4.05% of its vehicles now electric. The Golden State leads the nation with more than 1.5 million EVs on the road, accounting for nearly 40% of all EV sales in the U.S. Strong state incentives, an extensive charging network, and ambitious zero-emission vehicle mandates make California the undisputed leader in EV adoption.

2. New Jersey 2.25%

In second place is New Jersey, where EVs make up 2.25% of the vehicle fleet. The state has set a target of registering 330,000 EVs by 2025 and plans to mandate all new car sales to be electric by 2035, with interim requirements beginning in 2026. These policies, combined with growing consumer adoption, are rapidly boosting New Jersey’s EV presence.

3. Hawaii 2.10%

Hawaii ranks third with 2.10% of its fleet being electric. EVs are a natural fit for the islands due to short driving distances, high gas prices, and state-backed incentives. Hawaii continues to invest in expanding charging infrastructure to support its ambitious clean energy goals.

Previous reports

2024 The Worldwide EV Report

Methodology

We wanted to find the best countries and US states for the costs and incentives involved in buying an electric vehicle by analyzing the following factors.

We then gave each country and US state a normalized score out of ten on each of the factors, before taking an average across each of these scores to reach our final overall score out of ten.

Global

The countries with the best tax incentives to buy an EV: the purchase incentives for buying an EV in each country, taken from The EAMA for European countries and list articles for other countries.

The countries with the highest proportion of EVs: The number of passenger cars in each country divided by the total number of battery electric vehicles, taken from the EAFO and list articles.

The cheapest countries to buy an EV: The price of a Tesla Model 3 in each country, taken from Tesla as a proportion of the average salary in each country taken from World Population Review.

The US

The states with the highest charging station incentives: The rebates offered by electricity companies in each state for private charging stations, according to Enel X way.

The cheapest states to charge an EV: The cost to fully charge a Tesla Model 3 with electricity prices in each state according to The EIA. The states with the highest proportion of EVs: The total number of vehicles in each state according to the Federal Highway Administration divided by the number of electric vehicles in each state according to The US Department of Energy.