US electric vehicle sales dropped by 30.7 percent during the first nine months of 2026. This decline follows the expiration of federal clean-vehicle tax credits on September 30, 2025, which previously offered up to $7,500 for new vehicles and $4,000 for used models.
The market share of EVs in the US has fallen to 6 percent, compared to 8.5 percent a year ago. Tesla experienced a 14 percent decline in US sales over the same period, outperforming the broader segment. Meanwhile, US hybrid sales grew by 23 percent, now representing 15.6 percent of total sales.
Regulatory shifts under the Trump administration, including the rollback of fuel-economy and greenhouse-gas rules, have reduced pressure on automakers to maintain aggressive EV investment plans. This policy change coincides with a broader cooling of demand for fully electric vehicles in the American market.
In contrast, Europe reached a record 23.2 percent EV market share through September 2026, up from 17.7 percent the previous year. The region now offers over 150 electric models, compared to roughly 100 in 2024, with new small EVs often priced around or below €25,000.
Volkswagen has secured nearly 150,000 orders for its low-cost electric models in Europe. European growth is further supported by persistent purchase incentives, higher fuel prices, and a wider variety of affordable options, a segment that remains limited in the United States.
