U.S. electric vehicle sales recover, capturing 6.1% of the market

U.S. electric‑vehicle sales have rebounded after a sharp drop that followed the cancellation of tax credits last year. According to a new report from Cox Automotive, the sector has grown for three consecutive quarters, signalling a turning point for the market.

The latest data show that electric vehicles captured 6.1% of the U.S. market, the best performance since the third quarter of 2025.

Several factors are behind the recovery. Prices for electric vehicles have become more competitive, and high gas prices have pushed more people to consider electric options.

Toyota, Rivian, and Subaru are leading the way in sales, gaining ground against traditional automakers with models that appeal to drivers who want newer technology and better performance.

Toyota’s bZ and Lexus RZ models saw sales double after a refresh that arrived at dealerships late last year. The updated vehicles feature Tesla‑style charging ports, larger batteries, more powerful motors, and faster charging times, making them more attractive.

Tesla’s sales dropped 20% year‑over‑year during the same period, but the company still sells over half of all electric vehicles in the third quarter, maintaining a first‑mover advantage.

The U.S. recovery mirrors what happened in Germany after the government stopped incentives for electric‑vehicle purchases in November 2023. German sales fell by more than half the following month, but then steadily recovered, with August sales the second highest on record.