February brought a mixed bag of news for the U.S. electric vehicle market. While new EV sales dipped slightly month-over-month, they still hit a record high for the month, showcasing the continued growth of the sector.
Meanwhile, the used EV market saw a similar month-over-month decline, but experienced substantial year-over-year growth. Let’s dive into the key trends shaping the EV landscape.
New EV Sales: Luxury Leads, Tesla Shifts
Despite a 5.9% month-over-month drop, new EV sales reached 95,692 units in February – the highest ever for the month. Year-over-year, sales climbed 10.5%, though market share slipped to 7.7%.
– Luxury Surge: BMW and Rivian saw significant gains, with sales increasing by 20.9% and 34.0% respectively. This indicates a strong appetite for premium EVs.
– Tesla’s Fluctuations: Tesla’s overall sales declined by 10.0%, with notable drops in Cybertruck, Model 3, and Model Y sales. The top-selling models were the Tesla Model Y, Tesla Model 3, Ford Mustang Mach-E, Honda Prologue, and Rivian R1S.
Used EV Sales: Growth Despite Monthly Dip
The used EV market mirrored the new market, with a 4.7% month-over-month decline to 24,875 units. However, year-over-year growth remained strong at 34.2%. Tesla continues to dominate the used market, holding a 39.9% sales share, despite a 9.2% monthly drop.
Inventory and Supply: Fluctuations and Improvements
– New EV Days’ Supply: Increased by 16.8% month-over-month to 104 days, surpassing ICE+ supply. However, year-over-year, supply is down 31.7%, indicating improved inventory turnover.
– Used EV Days’ Supply: Reached 49 days, up 5.9% month-over-month but down 21.5% year-over-year. The gap between used EV and ICE+ supply has narrowed to just one day, reflecting a healthy and dynamic used EV market.
Pricing: Incentives Drive Affordability
– New EV Average Transaction Price (ATP): Decreased by 1.2% month-over-month to $55,273, with a 3.7% year-over-year increase. Notably, incentive spending reached a record 14.9% of ATP, making EVs more accessible.
– Used EV Average Listing Price: Increased by 1.8% month-over-month to $38,057, with a 1.6% year-over-year rise. Encouragingly, 12 brands offered used EVs at prices below their ICE+ counterparts, and 39% of used EV sales were under $25,000, highlighting the availability of affordable options.
[source: Cox Automotive]
