California EV sales reach record high in Q2 2026 despite federal tax credit cut

Governor Gavin Newsom announced that 86,857 electric vehicles were sold in California during the second quarter of 2026, representing 19.1% of all new‑car registrations – the highest quarterly share recorded this year. The surge came after a sharp decline following the termination of the $7,500 federal EV tax credit in October 2025 by the Trump administration, a move that had previously stalled EV sales nationwide.

Despite the federal policy shift and additional regulatory pressure from the EPA, California’s state incentives and its long‑standing clean‑vehicle standards helped the market rebound, reinforcing the state’s position as the leading U.S. market for electric vehicles.

The figures underline California’s continued role in advancing the nation’s decarbonisation goals even as federal support for EV purchases wanes.