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.
Key points
- US EV sales have grown for three straight quarters after tax credits ended last year.
- EVs reached 6.1% of the US market, the best share since Q3 2025.
- Toyota, Rivian and Subaru led growth, while Tesla sales fell 20% year over year.
U.S. electric vehicle sales have grown for three consecutive quarters after dropping when tax credits were canceled last year, according to a new report from Cox Automotive. EVs took 6.1% of the U.S. market in the latest quarter, their best share since the third quarter of 2025.
The data indicates the EV market is "finding its footing again," Stephanie Valdez Streaty, director of industry insights at Cox Automotive, said in an analysis accompanying the report. She added that EV prices have become more competitive and high gas prices have renewed consumer interest.
Brand performance
Toyota, Rivian and Subaru led the sales growth. Sales of the Toyota bZ and Lexus RZ roughly doubled after a refresh reached dealerships late last year; the updated models added Tesla-style charging ports, larger batteries, more powerful motors and faster charging times.
Tesla's sales fell 20% year over year. It still sold more than half of all EVs in the third quarter, retaining its first-mover advantage.
finding its footing again
— Stephanie Valdez Streaty, director of industry insights at Cox Automotive
Similar to Germany
The U.S. recovery resembles Germany's experience after the government ended EV purchase incentives in November 2023, a year earlier than planned. Sales there fell by more than half the following month, then steadily recovered.
German EV sales in August, the most recent month with available data, were the second highest on record.
