The US electric vehicle market has undergone significant changes. Only a few automakers managed to demonstrate growth in EV sales in the first quarter of 2026. Among them are Toyota, Rivian, Lucid, and Cadillac. Meanwhile, brands such as Audi and BMW recorded a sharp decline.
New Market Phase After Incentive Cancellation
The decline in new electric vehicle sales in the US became expected after the Trump administration canceled the long-term federal tax credit of $7,500 at the end of September. New data shows that sales plummeted in the last quarter of last year but have somewhat stabilized since then, which may indicate reaching a new baseline.
In the first three months of this year, an estimated 216,399 new electric vehicles were sold across the country. This is 27 percent less than in the first quarter of 2025, and also 7.8 percent less than in the fourth quarter of 2025.
EV Prices Are Falling, But Automakers Are Eating Nearly $8,000 Per Sale To Pull It Off
Although this decline is noticeable, it was not as significant as the drop in the fourth quarter of last year, when sales fell by 36 percent compared to the same period last year and by 46 percent compared to the previous quarter, which was the last one before the tax credit cancellation.
“The US EV market has clearly entered a new phase. With the federal incentives gone, the first quarter reflected a necessary reset — sales slowed, and market shares shifted. What comes next will depend less on policy and more on fundamentals: more affordable products, smarter pricing strategies, and continued investment in infrastructure. These long-term fundamentals continue to support EV growth. The timeline has changed, but the direction has not.”
This opinion was expressed by Stephanie Valdez Streaty, Director of Industry Insights at Cox Automotive.
Winners and Losers
Most brands experienced a significant drop in electric vehicle sales last quarter compared to the same period in 2025. For example, Audi’s EV sales fell by 89.6 percent, BMW by 63.3 percent, Dodge by 87.7 percent, Genesis by 89 percent, and Honda by 65.3 percent. However, there were a few exceptions to this overall trend.
For instance, Lexus EV sales increased by 206.7 percent to 4,456 units, Rivian by 21.2 percent to 10,365, Cadillac by 19.8 percent, Lucid by 3.5 percent. Toyota’s EV sales grew by 79 percent to 10,042 units due to strong demand for the updated bZ model.
Detailed Sales Statistics
The overall picture of electric vehicle sales by brand in the first quarter of 2026 compared to the same period in 2025 looks like this:
These figures clearly show how selective the market has become after the change in conditions. The success of companies like Toyota and Lexus may be linked to their strategy of presenting electric vehicles perceived by buyers as reliable and practical, as well as their ability to adapt quickly. Rivian and Lucid seem to have found their stable, albeit small, niche. The overall 27% decline is a serious signal, but stabilization compared to the catastrophic fourth quarter of 2025 provides reason to believe that the market is finding a new equilibrium point, where the real advantages of the products, not government incentives, will play a key role.