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.