Electric vehicle sales in the US are showing signs of life
The electric vehicle market in the U.S. has been growing for the last three consecutive quarters.
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Don’t go writing the obituary for the U.S. electric vehicle just yet. After sales tanked following the cancellation of tax credits last year, they’ve been growing for the last three consecutive quarters, according to a new report from Cox Automotive.
EV’s captured 6.1% of the U.S. market, their best showing since the third quarter of 2025. The data shows that the EV market is “finding its footing again,” Stephanie Valdez Streaty, director of industry insights at Cox Automotive, said in an analysis that accompanied the new report. EV prices have become more competitive, and high gas prices have sparked renewed consumer interest, she added.
Toyota, Rivian, and Subaru led the pack. Sales of the Toyota bZ and Lexus RZ about doubled following a refresh that hit dealerships late last year. The updated models adopted Tesla-style charging ports and received larger batteries, more powerful motors, and faster charging times.
Meanwhile, Tesla’s sales dropped by 20% year-over-year. Tesla still retains the first-mover advantage, though, selling over half of all EVs during the third quarter.
The recovery in the U.S. mimics what occurred in Germany after the government stopped incentives for EV purchases in November 2023, a year earlier than expected. The following month, sales fell by more than half. But after hitting that low, the market steadily recovered. German EV sales in August, the most recent month for which data is available, were the second highest on record.
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