U.S. Electric Vehicle Sales Show Recovery After Tax Credit Cancellation
Electric vehicle (EV) sales in the U.S. are rebounding after a decline following the cancellation of federal tax credits last year, according to a report from Cox Automotive. The market share for EVs reached 6.1% during the third quarter of 2026 — their highest level since Q3 2025 and an increase over three consecutive quarters. Stephanie Valdez Streaty, director of industry insights at Cox Automotive, noted that more competitive pricing and high gas prices are contributing to renewed consumer interest in EVs. Toyota, Rivian, and Subaru led the recovery with significant sales growth for their models after updates were introduced last year. The Toyota bZ and Lexus RZ saw nearly doubled sales following improvements such as Tesla-style charging ports and enhanced battery capacity. In contrast, Tesla experienced a 20% drop in sales compared to the previous year despite maintaining over half of all EV market share during Q3. The U.S. recovery mirrors what happened in Germany after its early termination of EV incentives in November 2023 led to an initial sharp decline followed by steady growth, with August 2026 recording second-highest sales on record.
Topics: electric vehicles Transportation