Americans bought 346,408 electric vehicles (EVs) in the third quarter, a record number. The total is 11% higher than the same period in 2023. EVs represent 8.9% of all cars sold, up from 7.8% last year.
The rate of EV sales growth has slowed, but sales are still growing.
“While year-over-year growth has slowed, EV sales in the U.S. continue to march higher,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive. “The growth is being fueled in part by Incentives and discounts, but as more affordable EVs enter the market and infrastructure improves, we can expect even greater adoption in the coming years.”
Discounts helped more Americans get into EVs. Incentives made up 12% of the average EV transaction price last quarter, compared to 7% of the average new car sale.
Americans Taking Advantage of Lease Loophole
Last quarter, leasing represented 22.2% of all new car transactions, but 42.7% of EVs were leased. Why the difference?
The federal government offers a tax rebate of up to $7,500 to help many Americans get into an electric car. However, the law sets several restrictions on purchased cars – income limits, price caps, and limits on where certain parts originate or assembly locations.
The IRS waives those restrictions on leased cars. So, many vehicles don’t qualify for the rebate when purchased but do when leased.
Tesla Share Remains Below 50%
Market leader Tesla saw its sales rebound in the third quarter, rising 6.6% compared to the second. However, this wasn’t enough to restore the brand’s market share to over 50%.
It’s not losing ground to any one competitor. Instead, Tesla faces more monthly competition as longer-established automakers introduce more EV models.
The Tesla Cybertruck became the third-best-selling EV in America, though it remains well behind the brand’s top two, the Model Y and Model 3. For four straight months, the Cybertruck has been the best-selling vehicle with a 6-figure price tag.
The best-selling non-Tesla EV was the Ford Mustang Mach-E, followed closely by a newcomer, the Honda Prologue. The Prologue, built in partnership with General Motors, shares most of its parts with the Chevy Blazer EV. Yet the Prologue, with 12,644 vehicles sold last quarter, easily outpaced the Blazer EV at 7,998.
