US Electric Vehicle Sales Rebound with Three Consecutive Quarters of Growth

The U.S. electric vehicle market is regaining traction, recording sales growth across three consecutive quarters following a downturn after tax credits were cancelled last year, according to a report from Cox Automotive covered by TechCrunch (https://techcrunch.com/2026/10/14/electric-vehicle-sales-in-the-u-s-are-showing-signs-of-life/).

Electric vehicles captured 6.1% of total U.S. automotive sales during the third quarter, marking their strongest market share since the third quarter of 2025. In an analysis accompanying the report, Stephanie Valdez Streaty, director of industry insights at Cox Automotive, noted that the EV market is "finding its footing again," citing more competitive EV pricing and elevated gasoline costs as key drivers of consumer demand.

Growth was paced by Toyota, Rivian, and Subaru. Sales of the Toyota bZ and Lexus RZ approximately doubled after a late-year refresh that added Tesla-style charging ports, larger battery packs, more powerful electric motors, and faster charging capabilities.

In contrast, Tesla experienced a 20% decline in sales year-over-year. Despite the drop, Tesla maintained its early-mover dominance, accounting for more than half of all electric vehicles sold in the U.S. during the third quarter.

The market pattern mirrors Germany's EV sector after its government abruptly eliminated purchase subsidies in November 2023, a year ahead of schedule. While German EV sales dropped by more than 50% the following month, the market gradually recovered, with August sales reaching the second-highest level on record.