U.S. electric vehicle sales rose 6.1% in the third quarter of 2026 to 262,649 units, according to Cox Automotive, which already exceeds the roughly 234,000 sold in the fourth quarter of 2025. That fourth quarter was the first after the federal tax credit expired, so the fourth quarter of 2026 is the first quarter that compares against a post-incentive base rather than a credit-driven peak.
Key Takeaways
U.S. EV sales reached 262,649 in the third quarter of 2026, up 6.1% from the second quarter and down 39.5% from the record third quarter of 2025, according to Cox Automotive.
Fourth quarter 2025 sales fell to about 234,000, down 46% from the prior quarter, so the fourth quarter of 2026 is the first to compare against a post-credit period.
September brought a 6.5% new EV share, incentives near 11% of the average transaction price, and a record 3.3% used EV share.
Benchmark Mineral Intelligence reports Europe up 39% in September while North America fell 44% and China fell 18%. Those figures include plug-in hybrids.
The 2025 Deadline Distorted Both Sides of the Comparison
The federal $7,500 EV tax credit ended September 30, 2025. Buyers rushed to use it, which made the third quarter of 2025 a record, and the fourth quarter paid for it. Cox Automotive reported that fourth quarter 2025 sales fell to about 234,000 units, down 46% from the third quarter and 36% from the fourth quarter of 2024, the lowest volume since the fourth quarter of 2022. EV share of new-vehicle sales dropped from 10.5% to 5.8%.
Every 2026 quarter through the third compared against a 2025 period that included credit-driven demand. That is why the third quarter shows a 39.5% year-over-year decline even as volume climbs from one quarter to the next. The fourth quarter breaks the pattern. Its comparison period is the post-credit trough.
The base effect deserves a caution. A fourth quarter above 234,000 would show year-over-year growth that partly reflects an easy comparison. Two tests separate recovery from arithmetic: whether the quarter also exceeds the 262,649 sold in the third quarter, and whether share, pricing and inventory improve together.
The 2026 Data Shows Sequential Recovery and Used Market Strength
Cox and Kelley Blue Book estimate that EV share reached about 6.4% in the third quarter, up from 5.8% in the second. Electrified vehicles, a category that adds hybrids and plug-in hybrids, made up nearly 25% of new-vehicle sales. Tesla sales fell 20% from a year earlier but still account for more than half of the market. Toyota and Lexus EV sales rose nearly fivefold, Rivian rose 46% and Subaru 31%. Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive, said that “improvement through 2026 suggests the reset phase is largely behind us.”
The September EV Market Monitor adds pricing and inventory detail. New EV sales were 86,632 units, down 40.7% from September 2025, with share at 6.5%, up from 6.3% in August. The average new EV transaction price was $55,842, down 3.1% from a year earlier. Incentives averaged about $6,117 per vehicle, or 11% of the transaction price, down from 14.2% a year ago. The premium over comparable conventional vehicles was $5,611, against an average of $8,665 in 2025.
Used EVs show the strongest momentum. Used EV sales reached 47,862 units in September, up 21.2% from a year earlier, and captured a record 3.3% of used-vehicle sales. Used EV supply tightened to 35 days. New EV supply stands at 68 days, up 64.2% from a year earlier, which gives dealers room to keep discounting.
Global Markets Move in Different Directions
Benchmark Mineral Intelligence reports 2.15 million EVs sold worldwide in September, down 2% from a year earlier, bringing 2026 sales to 15.5 million, up 3%. Benchmark counts battery electric and plug-in hybrid vehicles together, so its percentages are not comparable with Cox’s battery electric series.
Europe sold almost 600,000 EVs in September, a record and 39% above a year earlier, and is up 30% year to date. China fell 18% in September and is down 13% year to date. North America fell 44% in September and is down 24% year to date.
The International Energy Agency (IEA) had projected about 23 million electric car sales worldwide in 2026, after sales passed 20 million in 2025, according to its Global EV Outlook 2026. The IEA notes that U.S. sales held just under 10% of new car sales in 2025 and fell toward year end when the credits ended. The Benchmark year-to-date total sits well below that pace, and the projection needs rereading against it.
Fuel Costs and Hybrids Shape Consumer Choice
Ember reports that EVs in oil-importing countries saved about $20 billion in crude costs between March and August, displacing roughly 200 million barrels, according to its October 14 analysis. The group also finds that battery electric vehicles reached 6% of U.S. light-duty sales in the first eight months of 2026, Fifteen countries passed the United States in battery electric sales share this year, and that 49 of the 56 countries it tracks now post a higher share.
U.S. fuel prices frame the domestic choice. The EIA’s October Short-Term Energy Outlook forecasts retail regular gasoline at $3.91 per gallon on average for 2026, against $3.10 in 2025, with Brent crude averaging $105 per barrel in the fourth quarter. Higher pump prices improve the running-cost case for electrified vehicles of every type.
Hybrids capture much of that demand. EIA data show hybrids at 16% of third quarter new light-duty sales, and hybrids, battery electric and plug-in hybrid vehicles combined at 23%, against 24% a year earlier. Battery electric share fell from 10% to 6% over the same period. Buyers have kept moving toward electrified vehicles while shifting from plug-in models to hybrids.
Used EV Supply Builds Through 2027
Manheim’s third quarter data point to a growing supply pipeline. Used retail EV sales reached about 124,000 units, up 11.4% from a year earlier, and EVs hit a record 4.9% of Manheim wholesale transactions. Off-lease EVs made up about 10% of off-lease supply in the first half of 2026 and are expected to reach about 16% in the second half and about 19% by summer 2027, according to Cox Automotive.
Each off-lease EV that enters the used market moves into a household that may lack a home garage. That pattern raises the importance of multifamily parking, workplace lots and retail dwell-time charging, all of which depend on property owners rather than individual drivers for access.
Five Indicators Define the Fourth Quarter
Quarterly volume. Exceeding 234,000 beats the base. Exceeding 262,649 extends the recovery.
Share. A reading above the 6.5% September level confirms adoption growth independent of swings in total auto sales. Cox’s January outlook expected EV share near 8% in the year ahead, a level the market has not reached.
Pricing and incentives. The transaction price, the incentive share of price and the premium over conventional vehicles show whether automakers can attract buyers without federal credits.
Used EV adoption. Used share and days of supply show whether EVs are reaching a broader, more price-sensitive buyer base.
Inventory. New EV supply of 68 days against a used supply of 35 days points to continued new-vehicle discounting.
Charging Investment Follows the Installed Fleet
Charging investments are underwritten over many years, and a single quarter of sales does not define their return. The installed fleet, local registrations and measured utilization carry more weight than the quarterly headline. As EVs move into the used market, charging demand reaches drivers without home garages, which raises the importance of multifamily, workplace and public parking sites.
Overestimating near-term demand leaves equipment underused, and underestimating it leaves strong locations without capacity. Staged electrical capacity, with conduit and service sized for future stalls and stall counts that follow measured sessions, limits both errors. A charging program that adds $1,000 of annual net operating income supports about $12,500 of asset value at an 8% cap rate, so utilization determines the return.
A companion update after the quarter closes in January will show whether the market recovered or benefited from an easier comparison.
Frequently Asked Questions
How many EVs did the United States sell in the third quarter of 2026?
Cox Automotive reports 262,649 EVs, up 6.1% from the second quarter and down 39.5% from the record third quarter of 2025.
What is the fourth quarter 2025 baseline?
Cox Automotive reported about 234,000 EVs in the fourth quarter of 2025, down 46% from the third quarter, with a 5.8% share of new-vehicle sales.
How is the used EV market performing?
Cox reports 47,862 used EVs sold in September 2026, up 21.2% from a year earlier, a record 3.3% of used-vehicle sales.
How do global EV sales compare?
Benchmark reports Europe up 39%, China down 18% and North America down 44% in September 2026. The figures include plug-in hybrids.
Sources
https://www.coxautoinc.com/insights/q3-2026-ev-sales-report-commentary/
https://www.coxautoinc.com/insights/q4-2025-ev-sales-report-commentary/
https://www.coxautoinc.com/insights/ev-market-monitor-september-2026/
https://www.coxautoinc.com/press-releases/q3-2026-muvvi-press-release/
https://www.iea.org/reports/global-ev-outlook-2026/executive-summary