The U.S. electric vehicle (EV) market closed 2025 on a high note, with both new and used EV sales seeing an uptick in December. While the fourth quarter experienced a dip following the rollback of government-backed incentives, December marked a significant recovery, setting the stage for a competitive 2026.
Strong December Sales
December saw new EV sales hit an estimated 84,294 units, a 14.4% increase from November, though still a 38% decrease from the previous year. Despite this, the EV share of total new-vehicle sales remained steady at 5.7%. Tesla continued to dominate, selling 48,300 units, while GM and Rivian followed with impressive sales figures. Tesla’s market share dipped slightly, from 61.8% in November to 57.3%, as other competitors gained ground.
Used EV sales also showed strength, reaching 28,579 units, which represented a 10.2% year-over-year increase. Tesla remained the leader in used EV sales, with Ford, Chevrolet, and BMW following suit. Tesla’s Model 3 and Model Y were the top-selling models, while BMW saw the highest month-over-month growth among top brands.
Market Influences and Pricing
The market benefited from a strong inventory of new vehicles and incentives that helped keep prices competitive. The average transaction price for new EVs in December was $58,034, while incentives rose to a record $10,473 per vehicle. This narrowed the price premium over traditional internal combustion engine vehicles to $8,347.
Inventory and Pricing Trends
As of January, new EV inventory stood at 130 days’ supply, a significant 73% increase from the previous year. The average used EV supply was 50 days, remaining below the level of traditional vehicles for the ninth consecutive month. The availability of EVs at various price points helped cater to a broader range of consumers, from affordable options like the Nissan Leaf to high-end models.
Looking Ahead to 2026
Cox Automotive forecasts that EV market share will approach 8% of total U.S. vehicle sales in 2026, driven by new models from Chevrolet, Rivian, and BMW, alongside continued advancements in infrastructure and battery technology. While Q4 2025 was impacted by incentive changes, the overall outlook for the U.S. EV market in 2026 remains strong, with automakers and buyers driving market growth.
The U.S. EV market’s performance in 2025, particularly in December, sets a solid foundation for the coming year. With Tesla leading the charge and new competitors like GM and Rivian gaining momentum, 2026 promises to be a year of further growth, innovation, and market competition in the electric vehicle sector.
