- Americans bought more EVs last quarter than they have at any point since the end of the federal EV tax credit.
- EVs remained just 6.5% of the new cars sold in the U.S., but that’s up from 5.8% last quarter.
Sales of new electric vehicles (EVs) may be subtly beginning to rebound in the U.S. Americans bought more EVs in the third quarter than in the second, restarting the growth that had characterized the EV market until a chaotic 2025.
About 6.5% of all new cars sold in the U.S. last quarter were EVs, according to Kelley Blue Book data. That’s 7.7% higher than second quarter numbers, the first significant growth in a year.
One Year Since the EV Market Shook
- The withdrawal of federal tax credits last fall caused EV sales to spike, then crater.
A year ago, Americans set a record, with electric vehicles (EVs) making up more than 10% of all new cars sold in America for the first time. EV sales then instantly crashed.
The culprit? The federal government ended a $7,500 tax credit that had helped Americans afford electric cars. Americans rushed to buy them before the credit expired, then dramatically slowed EV shopping as prices rose without it.
EV sales have remained at or below 6% of the market since, even as, outside the U.S., electric cars now make up one in four new cars sold.
Signs of Stabilization
- Growth came largely from a few new market entrants.
“What we’re seeing now is a market finding its footing again,” said Stephanie Valdez Streaty, director of Industry Insights at Kelley Blue Book parent company Cox Automotive. “The third quarter was the best result in a year, and improvement through 2026 suggests the reset phase is largely behind us.”
“The next stage of growth will be driven by great products, competitive pricing, and automakers that continue to give consumers compelling reasons to make the switch,” she predicts. “And high pump prices are likely helping as well. With gas prices well above $4 a gallon, electric vehicles look better than ever.”
The growth came from just a few brands. Tesla continued to dominate, with its Model Y and Model 3 remaining America’s best-selling EVs.
Toyota and Lexus saw their EV sales improve fivefold over a year ago. The two brands entered the EV market lightly at first, recently stepping in with new products like the Toyota C-HR and an electric version of the long-running Lexus ES. They may have timed their entry perfectly.
Rivian saw its sales improve by 46%, thanks largely to the launch of its more affordable R2. Subaru posted 31% growth after introducing its Uncharted compact and Trailseeker midsize SUVs.
