The EV market is on the road to recovery thanks to high gas prices

The EV market is on the road to recovery thanks to high gas prices, after soaring fuel costs pushed many US buyers toward electrified options. Following a sluggish winter and fall, EV sales rebounded in the second quarter of 2026, with automakers posting some of their strongest results since the federal EV tax credit was removed last year, according to Cox Automotive. Kelley Blue Book estimates show about 247,000 EVs were purchased in Q2, up 14.7% from the start of the year. However, sales were still down 20.5% versus the same quarter in 2025, marking the third straight quarter of decline, though the downturn eased from Q1’s 27% drop. Tesla led the market, taking roughly one in three new EVs and about half of total US EV sales, largely from the Model 3 and Model Y. Toyota and Subaru posted standout growth, while Ford, Volvo, Mercedes, and Nissan saw sharp year-over-year EV declines.