US Electric Vehicle Sales Rebound After Steep Annual Decline

United States electric vehicle (EV) sales rose 6.1% in the most recent quarter to nearly 263,000 units, the highest level in one year. This rebound follows a severe downturn during the first nine months of 2026, when sales plunged 30.7% and EV market share dropped to 6% from 8.5% the previous year. The decline was driven by the September 30, 2025, expiration of federal clean-vehicle tax credits and the rollback of fuel-economy and greenhouse-gas regulations by the Donald Trump administration.

Despite the recent quarterly growth, sales remain roughly 40% lower than the record third quarter of 2025, which saw a rush of buyers before tax credits were scrapped. Cox Automotive attributes the current recovery to more competitive pricing and rising gasoline prices, which reached $4.41 per gallon. While Tesla maintains over half of the U.S. market, its year-over-year volume dropped 20%. In contrast, Toyota increased its U.S. EV sales fivefold, and Rivian saw a 46% increase.

Internationally, the European market has diverged from the U.S. trend, reaching a record 23.2% market share. Growth in Europe is supported by manufacturer compliance rules, a wider variety of affordable models priced below €25,000, and a record 10.9% market share for Chinese brands in June. In the U.S., consumers have shifted toward hybrids, which now account for 15.6% of total sales following a 23% increase.