U.S. electric vehicle sales show signs of recovery

Electric vehicle sales in the United States have grown for three consecutive quarters, recovering after sales fell following the cancellation of tax credits last year, according to a new report from Cox Automotive.

EVs accounted for 6.1% of the U.S. market, their largest share since the third quarter of 2025. The market is “finding its footing again,” Stephanie Valdez Streaty, Cox Automotive’s director of industry insights, said in an analysis accompanying the report. She cited more competitive EV prices and renewed consumer interest amid high gas prices.

Toyota, Rivian, and Subaru led sales. Sales of the Toyota bZ and Lexus RZ roughly doubled after refreshed models reached dealerships late last year. The updates brought Tesla-style charging ports, larger batteries, more powerful motors, and faster charging. Tesla sales, meanwhile, fell 20% year over year. The company still sold more than half of all EVs in the third quarter, retaining what the report describes as a first-mover advantage.

The U.S. recovery resembles Germany’s market rebound after the government ended EV purchase incentives in November 2023, a year earlier than expected. Sales fell by more than half the following month, then steadily recovered. German EV sales in August, the latest month with available data, were the second highest on record.