May 2026 US Electric Vehicle Market: New car sales recover but still under pressure, used car market continues to expand

Cox Automotive's latest "EV Market Monitor – May 2026" report reveals a diverging trend in the U.S. electric vehicle market: new EV sales improved month-over-month but remained below last year's levels, while the used EV market continued to expand, driven by increasing supply and rising demand, becoming a key force in overall EV adoption.

New Vehicle Market: Sales Rebound Month-over-Month, Year-over-Year Decline Narrows

Estimated new EV sales in the U.S. for May were 84,746 units, up 10.3% month-over-month but down 21.9% year-over-year. Although still in negative territory, this marks the smallest year-over-year decline since the removal of government subsidies, indicating the market is gradually stabilizing. EVs accounted for 5.7% of total new vehicle sales in May, up from April.

Tesla still led with sales of 40,578 units, but its market share fell to 47.9%, reflecting strong growth from competitors. Hyundai, Cadillac, Toyota, and Chevrolet followed. By model, Tesla Model Y and Model 3 continued to dominate, while Hyundai Ioniq 5, Ford Mustang Mach-E, and Toyota bZ series formed the second tier.

New EV inventory days on hand fell to 71 days, down from April and more than 40% lower than a year ago. This level is now below that of internal combustion engine vehicles, indicating tightening supply of new EVs. Inventory days for brands such as Hyundai, Cadillac, Ford, and BMW decreased significantly, consistent with higher sales and cautious inventory management.

The average transaction price for new EVs was $54,532, down 0.5% month-over-month and down 4% year-over-year, marking 11 consecutive months of year-over-year declines. Incentives remained high at 14% of the average transaction price, or about $7,611 per vehicle. Tesla's continued price declines are the main driver of the industry's average price decline, but higher sales of mid-to-high-priced models like Cadillac and BMW have somewhat offset the overall drop.

Used Vehicle Market: Both Sales and Prices Rise, Inventory Remains Tight

Used EV sales in May reached 42,923 units, up 5.5% month-over-month and 24.7% year-over-year, with market share holding at 2.8%. Tesla sold 15,353 units through non-franchised dealers, down slightly month-over-month, followed by Hyundai, Chevrolet, Ford, and BMW.

Used EV inventory days on hand fell to 31 days, down 7.5% month-over-month and 23.3% year-over-year, and for the third consecutive month lower than internal combustion engine vehicle inventory days, with the gap being the largest since September 2025. Inventory for brands such as Volkswagen and Honda was the tightest, while used Tesla, Toyota, and Hyundai inventories were also relatively low, reflecting faster turnover in this segment.

The average listing price for used EVs was $37,083, up 3.The average listing price of used electric vehicles was $37,083, up 3.8% month-over-month and 3.1% year-over-year. The increase was widespread, with 31 brands seeing price increases, including Tesla, Chevrolet, Hyundai, and Volkswagen. The premium of used EVs over internal combustion engine vehicles expanded to $2,227, up from $1,398 in April.

Industry Significance and Outlook

Stephanie Valdez Streaty, Director of Industry Insights at Cox Automotive, noted that new EV sales will slowly rise with new product launches and continued incentives, but the path will remain uneven, with consumer demand fluctuations and automaker strategy adjustments being major variables. In contrast, the used car market trend is more stable and predictable: improving supply is gaining momentum, and consumers' growing interest in more affordable EVs is expected to support a gradual and healthy expansion in sales.

From an industry chain perspective, tighter new car inventory may ease some price reduction pressures on automakers, but Tesla's pricing strategy still exerts downward pressure on average industry prices. The active used car market helps broaden consumer access to EVs, generating long-term benefits for areas such as charging infrastructure, battery recycling, and aftermarket services.

Overall, the U.S. EV market is in an adjustment period after policy rollbacks. The divergence between the new and used car markets reflects different consumer group demands. As more models enter the leasing market and return to the used car channel, used EVs are expected to become an important engine driving U.S. transportation electrification, thereby accelerating the expansion of charging networks and the energy transition process.