The U.S. electric vehicle market showed signs of stabilization in July, with both new and used EV sales increasing from June. New EV inventory remained relatively balanced with demand, while a growing number of off-lease vehicles and trade-ins expanded the supply of used electric cars.
At the same time, new EV prices moved higher as automakers reduced incentives, while used EV prices remained significantly above year-ago levels.
New EV Sales Rise 3.2% in July
An estimated 77,266 new EVs were sold in the U.S. in July, representing a 3.2% increase from June. However, sales remained 41.5% below July 2025 levels.
Electric vehicles accounted for 5.6% of total new-vehicle sales, a modest improvement from June. The sharp year-over-year decline is partly explained by unusually strong EV demand last year, when buyers accelerated purchases ahead of the expiration of the federal EV tax credit.
Tesla continued to dominate the market with an estimated 42,435 sales, giving the automaker roughly 55% of total new EV sales. Tesla sales increased 4.9% from June.
The Tesla Model Y remained the standout EV in the U.S. market, accounting for approximately 37% of all new EV sales. Its sales volume exceeded the combined sales of the entire EV lineups of many competing automakers.
Hyundai recorded one of the strongest performances among major EV brands, with sales increasing 36% from June. Kia also posted solid gains, helped by continued demand for the three-row EV9.
Used EV Sales Continue to Grow
The used EV market performed better in July, with sales reaching 36,810 units. That was a 7.9% increase from June and a 10.1% increase compared with July 2025.
Used EVs maintained a 2.4% share of the overall used-vehicle market. Tesla remained the leading brand, followed by Hyundai, Ford, BMW and Chevrolet.
Tesla continued to provide much of the market’s volume, but several competing brands recorded strong gains. Ford led major high-volume brands with an 18.9% month-over-month increase, while Chevrolet, Nissan and Cadillac also contributed to overall growth.
Among the models helping drive July’s used EV market were the Tesla Model 3, Tesla Model Y, Ford Mustang Mach-E, Hyundai IONIQ 5, Chevrolet Blazer EV and Cadillac LYRIQ.
The increase in off-lease returns and trade-ins is also giving shoppers a wider selection of newer used EVs, potentially improving availability for buyers who are not ready to purchase a new electric vehicle.
If you were eyeing an used electric vehicle, it’s worth checking our Used Electric Vehicle Buyer’s Guide.
New EV Inventory Moves Closer to Normal
New EV inventory declined in July, with supply falling to 80 days, down 6.2% from June and 1.7% from a year earlier.
EV inventory remained higher than the broader ICE+ market, but the difference narrowed considerably. The EV inventory premium fell from nine days in June to just four days in July, suggesting that automakers are getting closer to matching production with consumer demand.
Inventory levels varied substantially by brand.
Volkswagen had the highest inventory among major automakers at 147 days of supply, followed by Porsche at 138 days and Nissan at 133 days.
At the opposite end of the market, Subaru had just 46 days of supply, followed by Hyundai at 52 days and Lexus at 58 days.
The relatively tight inventory at some manufacturers could become increasingly important as automakers adjust production and incentives to changing EV demand.
Used EV Inventory Increases
Used EV inventory moved in the opposite direction in July.
Days’ supply increased to 46 days, up 14.2% month over month and 13.6% year over year. Used EV inventory moved above ICE+ levels for the first time since February 2026.
Even so, the difference was only three days, indicating that used EV inventory remained broadly aligned with demand rather than showing signs of a major oversupply.
Rivian recorded one of the largest inventory increases among high-volume brands, with days’ supply jumping 55% from June to 54 days.
Ford had the highest overall used EV supply at 63 days, while Tesla had the lowest at just 38 days.
The increase in used EV supply should give shoppers more choices, particularly as more electric vehicles return from leases and enter the retail used-car market.
New EV Prices Rise as Incentives Decline
The average transaction price for a new EV climbed to $56,126 in July, up 1.2% from June and 1.6% from a year earlier.
One of the biggest factors behind the increase was lower incentive spending. Incentives represented 11.8% of the average transaction price, or approximately $6,626 per vehicle, compared with 13.1%, or about $7,290, in June.
That represents a meaningful reduction in discounts as automakers become more selective with EV incentives.
The average EV also carried a $6,477 price premium over ICE+ vehicles.
The Tesla Model 3 and Model Y remained among the most affordable high-volume EVs, with average transaction prices of approximately $50,500 and $52,500, respectively.
However, the growing contribution of higher-priced models such as the Kia EV9, Hyundai IONIQ 9, Cadillac LYRIQ and Cadillac OPTIQ helped push the overall EV average higher.
As a result, July’s increase in EV transaction prices does not necessarily mean every electric car became more expensive. The market mix also shifted toward higher-priced vehicles.
Used EV Prices Remain Above Last Year
The average listing price for a used EV fell 1.2% from June to $37,832 in July. Despite the monthly decline, prices remained 8.3% higher than a year earlier.
That compares with a 0.2% monthly decline and a 3.6% annual increase for ICE+ used vehicles.
The used EV price premium over ICE+ vehicles narrowed to $2,967, down from $3,344 in June. Nevertheless, electric vehicles continued to command a noticeable premium in the used market.
Higher-priced brands such as Rivian and GMC contributed to the elevated average, while high-volume manufacturers including Tesla and Hyundai continued to offer more competitive pricing.
The continued year-over-year increase in used EV prices also reflects the changing composition of the used market. More newer-generation electric vehicles are entering the market, bringing newer battery technology, longer driving ranges and more modern features with them.
What July’s EV Market Data Means for Buyers
July’s numbers point to an EV market that is becoming more balanced after a period of significant volatility.
New EV sales improved from June, although they remained well below the unusually strong levels seen a year earlier. Meanwhile, used EV sales continued to grow on both a monthly and annual basis.
Inventory trends are also becoming more encouraging. New EV supply has moved closer to the broader vehicle market, while used EV inventory is expanding as more vehicles come off lease and enter the second-hand market.
For new-car shoppers, the biggest change may be the decline in incentives. With discounts representing a smaller portion of the transaction price, buyers may need to compare financing offers, dealer discounts and model pricing more carefully.
Used EV shoppers are benefiting from increasing availability, but prices have not yet fallen significantly. The growing supply of off-lease EVs could eventually create more competition among sellers, particularly for older models.
EV Market Outlook
The U.S. EV market is entering a period where underlying demand should become easier to measure. Year-over-year comparisons are gradually moving beyond the distortion caused by last year’s rush to purchase vehicles before the federal EV tax credit expired.
For the remainder of 2026, EV sales, inventory levels, incentives and used-car prices will be important indicators of where the market is heading.
The July data suggests that the market is not experiencing a simple boom or bust. Instead, new EV sales are stabilizing, used EV demand is growing, and inventory is gradually becoming better aligned with consumer demand.
As more leased EVs enter the used market and automakers adjust pricing and incentives, buyers could see an increasingly competitive EV market heading into the second half of 2026.
[source: Cox Automotive]
