US EV Sales Decline 27% in Q1 2026; Tesla Maintains Market Dominance
US electric vehicle sales fell 27% in Q1 2026, with Tesla holding a 54% market share. Most automakers experienced significant declines, while Toyota saw growth.
In the first quarter of 2026, U.S. electric vehicle (EV) sales declined by 27% year-over-year, totaling approximately 216,000 units, according to Cox Automotive. This downturn affected nearly all major automakers, highlighting the challenges in the EV market following the expiration of federal incentives.
Tesla sold 117,300 EVs during this period, securing a 54% share of the U.S. market. While Tesla's overall sales decreased by 8%, the Model Y saw a 23% increase in deliveries, reaching nearly 79,000 units and maintaining its position as the best-selling EV in the country.
Other automakers faced significant declines: Ford's EV sales dropped by 70%, BMW's by over 60%, and Volkswagen's by nearly 90%. Honda and Volkswagen recently withdrew their EV offerings from the U.S. market. Hyundai's sales remained flat, while Nissan and Mercedes experienced reduced demand.
Toyota emerged as an exception, with EV sales increasing by approximately 79% year-over-year to around 10,000 units, raising its market share to 4.6%. General Motors, through its Chevrolet, Cadillac, and GMC brands, maintained over 10% of the U.S. market.
Despite Tesla's strong market position, the company faces challenges due to a slowdown in overall EV demand. In March, Tesla reported a 6% increase in global sales for the first quarter, falling short of Wall Street expectations.
Analysts suggest that rising gasoline prices could potentially boost demand for EVs in the coming months.