February delivered a clear signal that the electric vehicle market is entering a new phase—one defined less by rapid expansion and more by price sensitivity, inventory discipline, and shifting consumer demand.
While new EV sales declined sharply year over year, the used EV segment continued to gain traction, reflecting a growing focus on affordability across the market.
New EV Sales Drop, But Monthly Momentum Improves
Total new EV sales reached an estimated 68,951 units in February. That represents a steep 26.8% decline compared to the same period last year, although sales were up 5.8% from January. EVs accounted for 5.8% of all new vehicle sales during the month.
Tesla remained the dominant force, delivering approximately 38,500 units. However, its market share slipped to 55.8%, down from 60.5% in January, as competitors gained ground.
Among legacy and emerging automakers, Chevrolet stood out with a remarkable 70.7% month-over-month increase, pushing it into the top tier of EV sellers. Hyundai and Toyota also recorded gains, while Ford and Nissan saw declines.
Used EV Market Gains Strength
The used EV segment continued its upward trajectory, with 30,879 units sold in February. That’s a 28.8% increase year over year and a 4.2% rise month over month.
Tesla again led the segment, with over 12,000 units sold through non-Tesla dealerships. It was followed by Chevrolet, Ford, BMW, and Hyundai.
Interestingly, while most brands saw gains, several European automakers—including Audi, Volkswagen, and Mercedes-Benz—experienced declines in used EV sales.
Inventory Tightens Across the Board
Inventory levels moved lower in February, signaling improved alignment between supply and demand.
New EV days’ supply dropped to 130 days—down 27% from January—though still above year-ago levels. The gap between EV and internal combustion vehicle supply narrowed significantly, suggesting the market is rebalancing.
Ford and Chevrolet carried the highest inventory levels, while Toyota and Mercedes-Benz maintained tighter supply.
In the used market, days’ supply fell to 42 days, dipping below year-ago levels and tightening across most high-volume brands. Tesla maintained the lowest supply at just 35.5 days, highlighting strong demand relative to availability.
Prices Continue to Decline
Pricing trends reinforced the market’s shift toward affordability.
The average transaction price (ATP) for new EVs fell to $55,300 in February, down both year over year and month over month. The price premium over gasoline vehicles narrowed to a record low of $6,532.
At the same time, incentives surged to an average of $7,870—equivalent to 14.2% of the transaction price—indicating increased efforts by automakers to stimulate demand.
In the used segment, the average listing price dropped to $34,821, down 8.5% year over year. Tesla’s average used price declined modestly, while brands like Mercedes-Benz, Hyundai, and Audi saw sharper reductions.
Notably, the price gap between used EVs and internal combustion vehicles shrank to just $1,334, with the majority of brands now offering used EVs at parity—or even below—their ICE counterparts.
Outlook: A Market in Transition
As the EV market heads into the spring selling season, the data points to a normalization phase. Automakers and dealers are adjusting to more realistic demand levels after years of rapid growth.
Looking ahead, a wave of new EV launches expected in 2026 could expand consumer choice and help drive renewed volume growth. At the same time, rising fuel costs may further strengthen the case for EV adoption, particularly as total cost of ownership becomes a central consideration for buyers.
[source: Cox Automotive]
