US EV Sales Rebound to 6.1% Share as Tesla Falls 20%
U.S. EV sales grew for a third straight quarter, reaching 6.1% market share as Toyota, Rivian and Subaru gained while Tesla fell 20% in 2026.
Summary
On October 14, 2026, Cox Automotive said U.S. electric vehicle sales had grown for three consecutive quarters after collapsing when tax credits ended in 2025. EVs captured 6.1% of the market in the third quarter of 2026, their strongest share since the third quarter of 2025. Cox Automotive industry insights director Stephanie Valdez Streaty attributed renewed interest to more competitive EV prices and high gas prices.
Toyota, Rivian and Subaru led the rebound. Sales of the refreshed Toyota bZ and Lexus RZ roughly doubled after the models reached dealerships in late 2025 with Tesla-style charging ports, larger batteries, more powerful motors and faster charging. Tesla sales fell 20% year over year, although it still sold more than half of all U.S. EVs during the quarter. Germany followed a similar pattern after ending purchase incentives a year early in November 2023: sales plunged more than half the next month, then steadily recovered, with August becoming the second-highest sales month on record.
Positives
- U.S. EV sales increased for three consecutive quarters after falling sharply when tax credits ended in 2025.
- EVs reached 6.1% market share, their strongest result since the third quarter of 2025.
- Toyota bZ and Lexus RZ sales roughly doubled following upgrades to batteries, motors, charging speeds and ports.
- Toyota, Rivian and Subaru led the U.S. EV recovery.
- Germany’s August EV sales reached their second-highest monthly level after steadily recovering from its post-incentive collapse.
Risks & concerns
- Tesla sales declined 20% year over year despite retaining more than half of the U.S. EV market.
- The 2025 cancellation of U.S. tax credits preceded a sharp collapse in EV sales.
- Germany’s sales fell more than half in December 2023 after purchase incentives ended one month earlier.