Gov. Phil Scott pauses Vermont’s EV sales targets until 2026

Driving the news: Vermont Governor Phil Scott is pumping the brakes on the state's EV sales goals, suspending rules that would have pushed car dealers to sell more electric vehicles starting next year.

For context: Scott's executive order puts Vermont's EV “mandate” on hold until the end of 2026, citing practical hurdles that many states are facing, like not enough charging stations, electric trucks that aren't quite ready for prime time, and vehicles that remain too expensive for many buyers. 

Why it matters: This retreat from Vermont (traditionally an environmentally progressive state) suggests the EV transition is facing real-world complications that transcend politics. While automakers rush to develop electric models, many argue the supporting ecosystem hasn't materialized quickly enough. 

On top of that, the order specifically calls out manufacturers who are squeezing dealers by limiting their access to popular gas vehicles unless they hit EV quotas.

What we're watching: Vermont's timing comes just as House Republicans move to eliminate the very tax credits that have made EVs more affordable. Those incentives have dramatically changed how Americans buy electric cars, with leasing soaring from just 11% of EV sales in 2022 to over 60% this February. 

Outsmart the Car Market in 5 Minutes a Week

No-BS insights, built for car dealers. Free, fast, and trusted by 95,000+ auto pros.

Subscribe now — it’s free.