- Americans bought 27% fewer electric vehicles (EVs) in the first quarter of 2026 than during the same period in 2025.
- A sharp sales decline began last year when the federal government ended a $7,500 tax rebate for EV buyers, but the decline may be leveling off.
Americans bought 216,399 EVs in the first quarter of 2026 – 27% fewer than in the first quarter of 2025.
The drop came mostly due to the end of a $7,500 federal tax credit on EV purchases. But the flight may be leveling out after a plunge. Kelley Blue Book data found Q1 sales just 7.8% lower than in the fourth quarter of 2025.
EVs accounted for 5.8% of all new car sales in Q1, unchanged from Q4 2025.
They peaked at 10.6% of the market in Q3 of 2025 as Americans rushed to claim the credit before it vanished.
Outside the U.S., EV sales continue to accelerate. The International Energy Agency estimates that a quarter of cars sold worldwide last year were electric. That leaves automakers in a challenging position, trying to compete in both a global market that is quickly embracing EVs and an American market that is taking its time.
Some, like Honda, have responded by dramatically cutting back on EV plans in the U.S. Others, like Hyundai, are pushing ahead with expanded EV lineups alongside gas-powered cars to be ready for a day when U.S. EV sales recover and grow.
“The U.S. EV market has clearly entered a new phase,” said Stephanie Valdez Streaty, director of industry insights at Kelley Blue Book parent company Cox Automotive
“With federal incentives gone, the first quarter reflected a necessary reset — sales slowed and market share shifted. What comes next will be driven less by policy and more by fundamentals: more affordable products, smarter pricing strategies, and continued investment in infrastructure. Those longer-term fundamentals continue to support EV growth. The timeline has shifted, but the direction hasn’t.”
The Top 10
One out of every three EVs sold in Q1 was a Tesla Model Y, the traditional market leader. Cadillac, Lexus, and Toyota all make their first appearances in the top 10.
| Rank | Model | Q1 2026 Sales |
| 1 | Tesla Model Y | 78,591 |
| 2 | Tesla Model 3 | 31,672 |
| 3 | Toyota bZ | 10,029 |
| 4 | Hyundai Ioniq 5 | 9,790 |
| 5 | Chevrolet Equinox EV | 9,589 |
| 6 | Rivian R1S | 5,494 |
| 7 | Ford Mustang Mach-E | 4,600 |
| 8 | Lexus RZ | 4,456 |
| 9 | Tesla Cybertruck | 3,519 |
| 10 | Cadillac Lyriq | 3,370 |
