US EV Sales Are Showing Signs of Life: 6.1% Share in Q3, Best in a Year

Don’t write the obituary for the American electric car just yet. After sales tanked following the cancellation of federal tax credits, U.S. EV sales have now grown for three consecutive quarters, according to a new report from Cox Automotive covered by TechCrunch on October 14. EVs captured 6.1% of the U.S. market in the third quarter — their best showing since Q3 2025.

The recovery is being led by product, not subsidies. Sales of the Toyota bZ and Lexus RZ roughly doubled after a refresh that reached dealerships late last year, bringing Tesla-style charging ports, larger batteries, more powerful motors and faster charging. Toyota, Rivian and Subaru led the pack. “The EV market is finding its footing again,” said Stephanie Valdez Streaty, Cox Automotive’s director of industry insights — crediting more competitive EV prices and high gas prices for renewed consumer interest.

Tesla’s position tells the other half of the story: its U.S. sales dropped 20% year over year, yet it still sold more than half of all EVs in the country during the quarter. The market is growing and diversifying at the same time — Tesla shrinking in share while the total pie expands.

The pattern rhymes with Germany, where EV incentives ended abruptly in November 2023: sales fell by more than half the following month, then recovered steadily — German EV sales this August were the second-highest on record. The lesson for U.S. buyers: subsidy cliffs are painful but temporary, and the current window of competitive pricing plus high gas prices is exactly when EVs make the most economic sense.