New EV sales drop 28% in Q1 2026, but used EVs surge 12% to near-record levels
New electric vehicle sales in the US dropped 28% in Q1 2026, while used EV sales surged 12% to near-record levels. The decline in new EV sales is attributed to the expiration of the federal tax credit, which has led to a glut in new EV inventory and forced automakers to offer incentives.
The US electric vehicle market is experiencing a split. New EV sales fell 28% year-over-year in Q1 2026 to 212,600 units. In contrast, used EV sales rose 12% to 93,500 units, with prices now close to those of equivalent gas cars. The federal tax credit's expiration is believed to be the cause of the decline in new EV sales. As a result, new EV inventory has increased, and automakers are offering incentives. Used EVs are selling at a rate similar to gas cars, with prices averaging $34,821, just $1,300 more than used gas vehicles.
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