CNBC’s Money Movers team welcomed John Murphy, Managing Director of Strategic Advisory at Haig Partners, to discuss the evolving dynamics of the EV market and the implications for automakers, dealers, and consumers.

Key highlights from the conversation:

• The expiration of the $7,500 federal EV incentive has widened the gap between new and used EV pricing by about 15%, leaving many owners significantly “underwater” on their vehicles.
• Tesla and other EVs face dramatic depreciation, with residual values far lower than traditional vehicles, echoing trends seen in China’s EV market.
• EV adoption in the U.S. may have peaked at 8% last year, with future penetration likely closer to 5% or even lower without improved affordability.
• Rivian could reach its “Model Y moment” with the launch of more affordable models in 2026–2027, showing that competitive pricing will be critical for broader EV adoption.