The U.S. electric vehicle market lost momentum in June after a stronger performance in May, with both new and used EV sales declining on a month-over-month basis. While demand softened, inventory levels for new electric vehicles remained significantly lower than a year ago, indicating that automakers continue to manage supply carefully.
At the same time, the used EV market remained substantially stronger than last year, supported by a growing number of off-lease vehicles and trade-ins entering the market. The expanding supply of pre-owned electric vehicles is helping improve affordability and making EV ownership accessible to more buyers.
New EV Sales Declined After May’s Strong Performance
An estimated 74,967 new electric vehicles were sold in June, representing a 15.2% decline from May and a 27.8% decrease compared with the same month last year. Electric vehicles accounted for 5.4% of all new vehicle sales, down from May as overall EV demand moderated.
Tesla remained the market leader, delivering approximately 40,460 vehicles during the month. Although Tesla also experienced lower sales, its decline was smaller than the overall market, allowing the brand to increase its share to roughly 54% of all EV sales.
Rivian moved into second place after recording an 8.3% month-over-month sales increase, making it the only major EV manufacturer to post growth during June. Toyota, Cadillac and Hyundai completed the top five, while several high-volume brands—including Ford, Chevrolet and Hyundai—reported lower monthly sales.
Used EV Market Remains Much Stronger Than Last Year
Used electric vehicle sales also slowed in June, falling 15.6% from May to 35,253 units. Despite the monthly decline, sales remained 20.3% higher than a year earlier, highlighting continued growth in the secondary EV market.
Used EVs represented 2.4% of total used vehicle sales during the month.
Tesla continued to dominate the used EV segment, with 12,848 vehicles sold through independent dealerships. Hyundai, BMW, Ford and Chevrolet followed as the strongest-selling non-Tesla brands.
The used EV market continues to benefit from increasing lease returns and trade-ins, providing buyers with a wider selection of electric vehicles than in previous years. Historically, the segment has been heavily dominated by Tesla models, but inventory is becoming increasingly diverse as more manufacturers build larger EV fleets.
New EV Inventory Remains Tight
Although inventory increased slightly during June, supply remains considerably lower than last year.
Average days’ supply for new EVs rose to 81 days, an increase of 14.7% from May, but remained 32.4% below year-ago levels. After briefly falling below internal combustion engine (ICE) vehicle inventory in May, EV inventory once again exceeded ICE levels during June.
Inventory conditions varied significantly between manufacturers.
Volkswagen, Porsche, Nissan and Chevrolet held some of the highest inventory levels, while Subaru, Lexus, Hyundai, Mercedes-Benz and Cadillac maintained some of the leanest supplies.
The relatively restrained inventory suggests automakers continue to balance production with demand rather than allowing stock levels to build significantly.
Used EV Inventory Continues to Grow
The used EV market also saw higher inventory during June, with average days’ supply increasing to 38 days, up 17.6% month over month.
Even with the increase, used EV inventory remained 5.5% lower than a year earlier and continued to sit below ICE vehicle inventory for the fourth consecutive month, indicating healthy demand despite greater vehicle availability.
Volkswagen, Audi, Nissan, Toyota and Chevrolet experienced some of the largest inventory increases. Cadillac, Ford, Mercedes-Benz and BMW carried the highest inventory levels among major brands, while Genesis, Rivian, Tesla and Hyundai maintained relatively limited supplies.
Overall, the market appears to be successfully absorbing the growing number of used EVs entering dealerships.
Used electric cars can make a lot of sense for a lot of reasons. The used EV market is booming due to falling prices, improved battery durability, and increasing fuel costs globally.
If you were eyeing an used electric vehicle, it’s worth checking our Used Electric Vehicle Buyer’s Guide.
New EV Prices Increased
The average transaction price (ATP) for a new electric vehicle climbed to $56,238 in June, rising 3.5% from May. Despite the monthly increase, average prices remained 4.5% lower than one year ago.
Manufacturer incentives also declined slightly, averaging 13% of the transaction price, or approximately $7,290 per vehicle, compared with 14% in May.
Unlike previous months, the higher average transaction price was not primarily driven by Tesla, whose ATP increased only modestly to $53,107 and remained below last year’s level.
Instead, the increase reflected changing market composition. Sales declined more sharply among lower-priced, high-volume brands such as Hyundai and Chevrolet, allowing more premium-priced electric vehicles to account for a larger share of total sales.
Used EV Prices Also Moved Higher
Average listing prices for used electric vehicles continued to rise during June, reaching $38,342. That represents a 3.5% increase from May and a 7% gain year over year.
Price increases were recorded across many popular brands, including Tesla, Chevrolet, Hyundai and Kia.
The overall rise was also influenced by changing market mix, as higher-priced brands such as Cadillac and BMW captured a larger share of used EV sales while lower-priced brands—including Chevrolet, Nissan and Volkswagen—represented a smaller portion of the market.
Compared with gasoline-powered vehicles, the used EV price premium widened to $3,382, up from $2,193 in May.
Outlook: Used EV Market Will Play an Increasingly Important Role
Looking ahead, the U.S. electric vehicle market is expected to remain in a more measured growth phase. While June reflected softer demand, new vehicle inventory continues to remain well below year-ago levels, suggesting manufacturers are maintaining disciplined production strategies.
Competition among automakers is expected to remain intense as brands continue balancing pricing, incentives and production volumes. Meanwhile, the expanding supply of used electric vehicles should continue improving affordability for consumers and support broader long-term EV adoption.
As more lease returns enter the market over the coming months, the used EV segment is likely to become an even more important driver of electric vehicle ownership, giving buyers access to a growing selection of lower-priced electric cars while supporting the overall transition to electrified transportation.
[source: Cox Automotive]
