U.S. EV Sales Grow for Third Straight Quarter, Cox Data Shows

By Daniel Okafor

Electric vehicles captured 6.1% of the U.S. car market last quarter, their strongest share since the third quarter of 2025. The figure comes from a new Cox Automotive report. It marks the third consecutive quarter of growth after sales collapsed when federal tax credits were cancelled last year.

The market is not just limping back. It is climbing.

What does the recovery look like?

Cox Automotive, the industry data firm behind the report, sees a market that has stabilized after a policy shock. Stephanie Valdez Streaty, director of industry insights at Cox Automotive, said the EV market is "finding its footing again."

Two forces drive the rebound, according to her analysis. EV prices have become more competitive. And high gas prices have sparked renewed consumer interest, she added.

The pattern has a precedent. Germany ended its EV purchase incentives in November 2023, a year earlier than planned. German sales fell by more than half the following month. Then the market steadied and recovered. German EV sales in August — the most recent month with data — were the second highest on record.

The U.S. appears to be replaying that script, roughly a year behind.

Who is winning the new buyers?

Toyota, Rivian, and Subaru led the sales growth.

Toyota's gains stand out for their mechanism. Sales of the Toyota bZ and the Lexus RZ roughly doubled after a refresh that reached dealerships late last year. The update was substantive: the models adopted Tesla-style charging ports, larger batteries, more powerful motors, and faster charging times.

In other words, Toyota fixed the product. Buyers responded within a quarter.

Why did Tesla fall while the market rose?

Tesla's sales dropped 20% year-over-year, even as the overall EV market grew. That is the sharpest divergence in the Cox data.

The decline has limits, though. Tesla still sold over half of all EVs in the third quarter, according to the report. Its first-mover advantage holds. But the share is no longer safe from erosion, and rivals are now growing from a smaller base against a shrinking Tesla denominator.

The competitive math is shifting. If Toyota, Rivian, and Subaru keep posting quarters like this one, Tesla's majority position becomes the market's next measurable question.

What happens next?

The German comparison gives analysts a rough forecast template. Berlin's market bottomed the month after incentives ended, then recovered steadily for nearly two years. U.S. tax credits ended last year; three growth quarters have followed.

Whether the U.S. matches Germany's trajectory depends on the same variables Streaty cited: price competitiveness at the dealership and pump prices that push buyers to compare running costs. The 6.1% share suggests the floor has held — and that buyers, not subsidies, are now doing the pulling.