US electric vehicle sales are showing signs of recovery after a period of significant decline. According to a new report from Cox Automotive, the sector has grown for three consecutive quarters, reversing the slump that followed the cancellation of federal tax credits last year. The data indicates that electric vehicles now capture 6.1% of the total US market, marking the strongest performance since the third quarter of 2025.
Cox Automotive Market Analysis
Stephanie Valdez Streaty, director of industry insights at Cox Automotive, described the current trend as the market “finding its footing again.” She attributed the renewed interest to two primary factors: improved price competitiveness for electric vehicles and persistently high gasoline prices. These economic pressures appear to be encouraging consumers to reconsider their purchasing decisions despite previous policy changes.
The trajectory of the US market mirrors a similar pattern observed in Germany. That nation halted its EV purchase incentives in November 2023, a year earlier than scheduled. Sales in Germany subsequently fell by more than half. However, the market has since stabilized, with August sales reaching the second-highest level on record. The parallel suggests that demand can rebound even after the removal of government subsidies.
Tesla and Traditional Automaker Performance
Toyota, Rivian, and Subaru led the pack in recent sales figures. Toyota saw its sales of the bZ and Lexus RZ models approximately double. This surge followed a refresh of these vehicles that reached dealerships late last year. The updated models adopted charging ports similar to those used by Tesla, while also receiving larger batteries, more powerful motors, and faster charging capabilities.
Tesla experienced a different trend. The company reported a 20% year-over-year drop in sales. Despite this decline, Tesla retains a dominant position in the sector. The company sold over half of all electric vehicles during the third quarter, maintaining its first-mover advantage in the US market.
The data suggests that the electric vehicle sector is stabilizing after a volatile period. The combination of competitive pricing and consumer response to fuel costs is driving the current growth. This recovery aligns with international trends where markets have adjusted to the absence of direct purchase incentives.
Source: TechCrunch
