Non-Starter

Tough opening quarter for EV sales

The first quarter of 2026 saw a significant shift in the electric vehicle market, with new EV sales dropping 28% year-over-year to 212,600 units. However, used EV sales surged 12% to 93,500 units, indicating a rebound in the used EV market.

The federal tax credit's expiration on September 30, 2025, has had a severe impact on new EV sales, with prices now within $1,300 of equivalent gas cars.

Tesla, the largest US EV seller, moved an estimated 122,196 units in Q1 2026, down 4.6% year-over-year but holding a 3.3% share of the total market. The broader industry decline hit harder: total new vehicle sales fell 6.5% to 3.67 million units, with a SAAR of 15.5 million.