New EV sales plunge 28% as used EVs surge 12%
Get the Energy newsletter
Daily energy & climate — solar, EVs, oil, the policy fights and tech bets shaping the transition. Free.
- Cox Automotive reported new EV sales fell 28% YoY to 212,600 units in Q1 2026, while used EV sales rose 12% to 93,500 units.
- Federal EV tax credit of $7,500 expired on September 30, 2025, removing a price subsidy that had supported new EV demand.
- Tesla sold an estimated 122,196 new EVs in Q1 2026, a 4.6% YoY decline, but still held a 3.3% share of total vehicle sales.
- Used EVs now average $34,821, within $1,300 of the $33,487 average price of used gasoline cars, narrowing a gap that was over $10,000 in early 2023.
- Mark Strand noted that lease returns of EVs and PHEVs are accelerating, with monthly lease return volumes projected to reach 240,000 units by 2028, about 50,000 per month electric.
- Hybrids accounted for a record 756,000 units in Q4 2025, up 57% YoY, with Toyota holding 43% of hybrid sales.
- U.S. public charging sessions hit 141 million in 2025, a 30% increase, indicating rising EV usage despite new sales decline.
Why it matters: Consumers benefit from cheaper used EVs that now cost almost the same as used gas cars, while automakers lose momentum in new EV sales without the tax credit, forcing them to increase incentives and manage excess inventory. Lease returns and hybrid sales are also reshaping the market, giving dealers a steady flow of new EVs and steering buyers toward hybrids.
