US electric vehicle market 2026

In early July 2026 the United States EV market showed a modest rebound, with quarterly sales reaching about 247,000 units – the strongest quarter since the federal tax credit expired in late 2025. The lift was driven by more affordable models, expanded charging infrastructure and higher fuel prices. Tesla remained the clear leader, with the Model Y topping sales and the Model 3 also gaining, while Rivian exceeded its own forecasts and Toyota more than doubled its U.S. EV volume year‑over‑year.

By late July, the broader EV segment had contracted sharply, falling 27 % year‑on‑year, yet Tesla’s share rose to 50.5 %, putting the company back above the 50 % threshold. Rivals such as Chevrolet, Hyundai and Cadillac each held only 5‑6 % of the market.

Tesla’s Cybertruck experienced a dramatic sales collapse, with registrations dropping from nearly 39,000 in 2024 to just over 7,000 in the first five months of 2026, exacerbated by recalls and limited external demand. On 23 July 2026 Tesla’s share price fell 14.5%, erasing roughly $195 billion from its market value – the steepest loss among the Magnificent Seven this year. The decline came despite a 26 % rise in Q2 revenue and higher deliveries, as margins missed forecasts and free cash flow turned negative, heightening investor concerns over a $25 billion capital‑spending plan for robotaxis, AI and energy projects.