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US Electric Vehicle Sales Rise for Third Consecutive Quarter Despite Tesla Decline

ByJolyen

Oct 16, 2026

US Electric Vehicle Sales Rise for Third Consecutive Quarter Despite Tesla Decline

Electric vehicle (EV) sales in the United States increased for the third consecutive quarter in 2026, reaching 262,649 units between July and September. According to Cox Automotive, sales rose 6.1% from the previous quarter, supported by more competitive pricing, higher gasoline costs, and growing demand for newer electric models.

The latest figures show EVs accounted for 6.4% of all new vehicle sales, up from 5.8% in the second quarter. However, sales remained 39.5% below the same period in 2025, when consumers rushed to purchase EVs before federal tax incentives expired.

US EV Sales Recover After Federal Incentives End

According to Cox Automotive’s third-quarter report, EV sales reached their highest quarterly volume since the record-setting third quarter of 2025. The earlier period saw EVs account for more than 10% of new vehicle purchases before federal incentives ended.

Stephanie Valdez Streaty, director of industry insights at Cox Automotive, said the market was showing signs of recovery after the decline that followed the incentive changes. She attributed the improvement to competitive vehicle pricing, new products, and gasoline prices exceeding $4 per gallon.

Including conventional hybrids and plug-in hybrid vehicles, electrified models represented nearly 25% of all new vehicle sales during the quarter. Cox Automotive said automakers continued adjusting their EV strategies as consumers considered different electrified options.

Toyota, Rivian and Subaru Record Sales Growth

Toyota, Lexus, Rivian, and Subaru were among the manufacturers reporting higher year-over-year EV sales. Toyota sold 12,904 electric vehicles, an increase of 328%, while Lexus sales rose 187.2% to 4,483 units.

The Toyota bZ and Lexus RZ benefited from updated models introduced in late 2025, featuring larger batteries, more powerful motors, faster charging, and Tesla-compatible charging ports.

Rivian recorded 19,239 EV sales, up 45.7% from a year earlier, while Subaru sales increased 31.5% to 4,566 vehicles. The figures reflect demand for newer products and expanded electric vehicle lineups.

Tesla Retains Market Leadership Despite Falling Sales

Tesla sold 144,094 vehicles during the third quarter, representing a 19.7% decline from the previous year. Despite the decrease, it retained approximately 54% of the US EV market, according to the Kelley Blue Book sales data.

The Model Y accounted for approximately 69% of Tesla’s quarterly deliveries, while the Model 3 represented another 28%. Together, the two models generated nearly all of the company’s US EV sales.

A similar recovery followed the removal of purchase incentives in Germany in late 2023, when monthly EV sales initially fell by more than half. According to German vehicle registration statistics, sales subsequently recovered, with August 2026 recording the country’s second-highest monthly EV sales total.


Featured image credits: Magnific.com

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Jolyen

As a news editor, I bring stories to life through clear, impactful, and authentic writing. I believe every brand has something worth sharing. My job is to make sure it’s heard. With an eye for detail and a heart for storytelling, I shape messages that truly connect.

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