US electric vehicle market shows signs of recovery

The United States electric vehicle (EV) market is showing signs of stabilization and recovery following a period of decline. After the removal of the $7,500 federal tax credit under the Trump administration, the market initially experienced a surge in sales followed by a sharp drop, leaving dealers with significant excess inventory.

Recent third-quarter data indicates that sales for major manufacturers like Tesla and Rivian have exceeded analyst expectations. According to Cox Automotive, EV market share has stabilized at approximately 6 percent. Furthermore, dealer inventory levels have decreased significantly, dropping from roughly 180 days of supply at the start of 2026 to 78 days in August, aligning more closely with internal combustion engine vehicle stock levels.

Industry executives from Hyundai Motor and Ford Motor report that dealerships are increasingly requesting more EV inventory as consumer interest returns. Analysts attribute this renewed demand to rising gasoline prices and geopolitical instability, which are making electric alternatives more attractive to American consumers.