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US electric vehicle sales rebound for third straight quarter, Cox report finds

Toyota, Rivian and Subaru lead gains while Tesla sales slide 20 percent year over year

By LineZotpaper
Published
Read Time2 min
US electric vehicle sales have grown for three consecutive quarters after collapsing when federal tax credits were cancelled last year, according to a new Cox Automotive report, with EVs capturing 6.1 percent of the market in the third quarter, their best showing since the third quarter of 2025.

Electric vehicles captured 6.1 percent of the US market in the third quarter, the best showing since the third quarter of 2025, according to Cox Automotive's latest Kelley Blue Book EV sales report. The data suggests the market is "finding its footing again," Stephanie Valdez Streaty, director of industry insights at Cox Automotive, said in an analysis accompanying the report. She pointed to more competitive EV prices and renewed consumer interest driven by high gas prices.

Toyota, Rivian and Subaru led the pack. Sales of the Toyota bZ and Lexus RZ roughly doubled following a refresh that reached dealerships late last year. The updated models adopted Tesla-style charging ports and received larger batteries, more powerful motors and faster charging times.

Tesla, meanwhile, saw sales drop 20 percent year over year. The company still retains a first-mover advantage, selling more than half of all EVs during the quarter.

The US recovery mirrors what happened in Germany after the government ended EV purchase incentives in November 2023, a year earlier than expected. German sales fell by more than half the following month before steadily recovering, with August sales, the most recent month for which data is available, the second highest on record.

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Analysis

Why This Matters

  • The rebound shows the US EV market can absorb the removal of federal subsidies, a signal for automakers weighing future investment in electric models
  • Tesla's 20 percent year-over-year sales decline shows rivals are gaining ground, even as Tesla still accounts for more than half of US EV sales
  • The US trajectory now resembles Germany's post-subsidy recovery, offering a reference point for other countries phasing out EV incentives

Background

The US federal EV tax credit, long a central incentive for buyers, was cancelled last year, and sales promptly collapsed. Germany offers a parallel case: it ended its EV purchase incentives in November 2023, a year earlier than expected, and sales fell by more than half the following month before recovering steadily. Around the world, governments have been unevenly rowing back EV subsidies, making consumer demand and price competition more important to electrification timelines.

Key Perspectives

Cox Automotive analysts: The market is "finding its footing again," with more competitive prices and high gas prices drawing buyers back. Toyota, Rivian and Subaru: Led the quarter's growth, with refreshed models such as the Toyota bZ and Lexus RZ adopting Tesla-style charging ports plus larger batteries and faster charging. Tesla: Still dominant, selling over half of all EVs in the quarter, but the 20 percent year-over-year drop shows its lead is under pressure. Skeptics: A 6.1 percent share remains modest, and the recovery rests partly on gas prices, which can shift quickly.

What to Watch

  • Whether the growth streak continues into the fourth quarter, confirming the recovery is durable
  • How Tesla responds to its sales slide, through new models, pricing moves or other strategies
  • Gas prices and EV price trends, the two factors Cox Automotive identifies as driving renewed consumer interest
  • Whether the US follows Germany's path, where sales eventually climbed to near-record monthly levels

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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