US Electric Vehicle Sales Plunge as Europe Adoption Grows

Electric vehicle sales diverged sharply between the United States and Europe through September 2026. In the U.S., EV sales fell 30.7%, accounting for only 6% of total sales. This decline followed the expiration of a $7,500 federal tax credit and efforts by the Trump administration to eliminate EV support and weaken fuel-efficiency regulations.

U.S. consumers are pivoting toward used EVs and hybrids, the latter of which saw a 23% sales increase. Legacy automakers such as Ford and General Motors reported significant sales drops, prompting Honda to end EV production after this year to expand hybrid sales. In contrast, EV-only brands showed more resilience; Rivian grew sales by 29% following the release of the R2 SUV, and Tesla experienced a milder 14% decline.

European EV sales rose to 23.2% of the market, driven by stringent emissions regulations, government tax breaks, and the entry of affordable Chinese imports. European buyers are increasingly adopting electric vehicles to mitigate high fuel prices resulting from the war in Iran.