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US EV Market Recovers Amid High Gas Prices

Created at 10 Jul · 4:00 PM1 source↑ Market-relevant
IN SHORT

US electric vehicle sales saw their first sequential improvement since early 2023, with Cox Automotive estimating 247,226 vehicles sold in Q2. This rebound is attributed to surging gas prices, which make EVs more economically competitive.

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Key Numbers

247,226US EV sales in Q2
216,000US EV sales in Q1
41%Ford EV sales drop
48%Chevrolet EV sales drop
59%Mercedes EV sales drop
88%Nissan EV sales drop
225%Toyota EV sales jump
46%Kia EV sales increase
7.6%Rivian sales increase
124,800Tesla US sales in Q2
50.5%Tesla US market share
84,863Tesla Model Y deliveries in Q2
1.5%Tesla Model Y year-over-year decline
480,126Tesla global deliveries in Q2
25%Tesla global deliveries year-over-year increase

Who's Involved

Cox Automotive
Estimated US EV sales figures for Q2
Elon Musk
CEO of Tesla
Tesla
Dominant player in the US EV market
Ford
Automaker with a 41% drop in EV sales
Chevrolet
Automaker with a 48% drop in EV sales
Mercedes
Automaker with a 59% drop in EV sales
Nissan
Automaker with an 88% plunge in EV sales
Toyota
Automaker with a 225% jump in EV sales
Subaru
Automaker that more than doubled EV deliveries
Kia
Automaker with a 46% increase in EV sales
Rivian
Automaker with a 7.6% increase in EV sales
US EV Market Recovers Amid High Gas Prices

↳ Why This Matters

The resurgence in EV sales, driven by high gas prices, indicates a potential shift in consumer preference and highlights the sensitivity of the automotive market to fuel costs. This trend could influence future investment and product strategies for automakers and impacts the broader energy transition.

Key facts

  • US EV sales increased sequentially in the second quarter for the first time since federal incentives were removed.
  • Cox Automotive estimates 247,226 EVs were sold in Q2, up from approximately 216,000 in Q1.
  • Higher gasoline prices are making electric vehicles more economically attractive compared to internal combustion engine vehicles.
  • While some automakers experienced significant declines in EV sales, others saw substantial growth.
  • Tesla continues to lead the US EV market, with its Model Y being the country's best-selling EV.

The U.S. electric vehicle market has shown signs of recovery in the second quarter, with sales increasing sequentially for the first time since federal incentives were phased out. Cox Automotive estimates that 247,226 EVs were sold in the period, a rise from approximately 216,000 in the first quarter. This rebound is largely attributed to a surge in gasoline prices, which has improved the economic viability of EVs for consumers.

For some automakers, the timing of this market shift has been challenging. Companies that scaled back EV plans or removed electric models from their lineups found themselves offering less competitive options as fuel costs rose. Ford saw its EV sales decline by 41%, Chevrolet by 48%, Mercedes by 59%, and Nissan by 88%.

Conversely, manufacturers that maintained their commitment to electric vehicles experienced growth. Toyota's EV sales surged by 225%, Subaru more than doubled its deliveries, Kia's sales rose by 46%, and Rivian saw a 7.6% increase. Tesla continued its dominance in the U.S. market, selling 124,800 vehicles and holding a 50.5% market share, with the Model Y remaining the top-selling EV. Globally, Tesla's performance was even stronger, with total deliveries reaching 480,126 in the second quarter, a 25% year-over-year increase.

Frequently asked questions

The recovery is primarily attributed to high gasoline prices, which have made electric vehicles more economically attractive compared to traditional gasoline-powered cars.

Toyota, Subaru, Kia, and Rivian reported significant increases in their EV sales during the second quarter.

Ford, Chevrolet, Mercedes, and Nissan saw substantial drops in their EV sales during the second quarter.

Tesla remains the dominant player in the US EV market, holding a 50.5% market share in the second quarter, with the Model Y being the country's best-selling EV.

What Happens Next

01Monitor future EV sales data for continued sequential growth.
02Observe automakers' strategic responses to changing EV market dynamics and fuel prices.

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How It Developed

US EV sales totaled 247,226 vehicles in Q2, up from 216,000 in Q1.
This marks the first sequential improvement in US EV sales since federal incentives ended.
Higher gas prices are improving the economics of EV ownership relative to conventional vehicles.
Some automakers like Ford and Chevrolet saw significant drops in EV sales, while Toyota, Subaru, Kia, and Rivian reported increases.
Tesla maintained market dominance, selling 124,800 vehicles in the US and remaining the top EV seller globally.

Sources

T1
The US EV market comes back from the dead. Thank high gas prices.Business Insider

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