US New EV Sales Drop 28% in Q1 2026, Used Up 12%

In the first quarter of 2026, new electric vehicle sales in the United States fell 28 percent from the previous year, totaling 212,600 units, while used electric vehicle sales rose 12 percent to 93,500 units, according to data from Cox Automotive. The decline in new sales occurred despite gasoline prices climbing toward $4 per gallon nationwide, driven by escalating tensions in the Middle East.

The drop in new electric vehicle purchases marked a continuation of challenges following the expiration of the federal $7,500 tax credit on September 30, 2025, under the One Big Beautiful Bill Act. This incentive had previously made electric vehicles more affordable for many buyers. Without it, the average transaction price for new electric vehicles reached $55,300 in February, about $6,500 higher than comparable gasoline-powered models. Inventory for new electric vehicles swelled to a 130-day supply, 46 percent above the 89 days for internal combustion engine vehicles, prompting automakers to increase incentives. Electric vehicle market share slipped to 5.8 percent of total new vehicle sales, down from 7.5 percent in the third quarter of 2025, when buyers rushed to claim the credit...