Electric Vehicle Sales in the United States Show Signs of Life

The US electric vehicle market has grown for three consecutive quarters.

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Don't write for US Electric Vehicle yet. Sales have grown for the past three quarters in a row, according to a new report from Cox Automotive, after falling after tax credits were repealed last year.

Electric vehicles accounted for 6.1 percent of the U.S. market, their best showing since the third quarter of 2025, Stephanie Valdez Street, director of industry insights at Cox Automotive, said in an analysis accompanying the new report. He added that the price of electric cars has become more competitive and the high price of gasoline has re-attracted consumers.

Toyota, Rivian and Subaru led the pack. Sales of the Toyota bZ and Lexus RZ nearly doubled after an update 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 were down 20 percent from last year. Tesla still maintains first-mover advantage, though it sold more than half of all EVs in the third quarter.

The recovery in the U.S. is similar to what happened in Germany after government incentives to buy electric cars ended in November 2023, a year earlier than expected. The following month, sales fell by more than half. But after reaching that bottom, the market steadily recovered. German electric vehicle sales in August, the latest month for which data are available, were the second-highest month on record.

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