Despite concerns about a slowdown in electric vehicle (EV) sales growth earlier this year, fresh data from the third quarter paints a different picture—one of continued momentum in the EV sector. Backed by lucrative incentive programs and a wider array of EV options, the U.S. market has reached new milestones, underscoring the growing adoption of electric mobility.
As per Kelley Blue Book report which has recently been reported by Cox Automotive, U.S. EV sales grew by 11 percent year over year in Q3, achieving record highs in both market share and total delivery volume. The total number of EVs sold in the third quarter hit 346,309, a 5 percent increase from Q2. Additionally, EV market share reached an unprecedented 8.9 percent, up from 7.8 percent in the same quarter last year.
“While year-over-year growth has slowed, EV sales in the U.S. continue to march higher,” said Stephanie Valdez Streaty, Cox Automotive’s Director of Industry Insights. “The growth is being fueled in part by incentives and discounts, but as more affordable EVs enter the market and infrastructure improves, we can expect even greater adoption in the coming years.”
Tesla Leads the Pack, But Competition Grows
Tesla, as usual, maintained its dominance in the U.S. EV market, delivering 166,923 vehicles in Q3—a 6.6 percent year-over-year increase. Notably, Tesla’s newly popular Cybertruck contributed significantly to this growth, with 16,692 units sold, placing it behind only the Model 3 (58,423 units) and the Model Y (86,801 units).
However, while Tesla remains the clear frontrunner, other automakers are ramping up their EV programs. Ford sold 23,509 EVs, while Chevrolet delivered 19,933. General Motors (GM) had an especially strong quarter, with a 60 percent surge in EV sales across its brands,
Incentives Powering Growth
One of the driving forces behind the record-breaking quarter has been the increase in incentives. During Q3, incentives accounted for over 12 percent of the Average Transaction Price (ATP) on EV sales, far surpassing the industry average of around 7 percent. This marks a continuation of a trend seen earlier in the year—Cox Automotive reported in July that incentives had reached a three-year high at 11.54 percent of ATP before climbing even higher in August to 13.32 percent.
Leasing programs have also helped boost EV adoption, with automakers taking advantage of generous government incentives. The result? More affordable leasing options, opening the door for a broader range of consumers to explore electric vehicles.
The Road Ahead: Infrastructure and Innovation
Cox Automotive expects even more growth in the coming months, with EV market share predicted to hit 10 percent sooner rather than later. This growth will be fueled by expanding charging infrastructure, more diverse EV models, and continued government incentives. As more consumers consider EVs for their next vehicle purchase, the market is poised for even greater adoption.
With affordable options, improved infrastructure, and the relentless innovation from key players like Tesla, the future of the U.S. EV market looks electric—and it’s just getting started.
You can read through the complete Cox Automotive report for more information.
