New EV Sales Dropped 28%. But Used EVs Are Booming The decline in new electric vehicle (EV) sales in the first quarter of 2026 has been significant, with a 28% year-over-year drop, but the used EV market is experiencing a surge. This shift highlights the evolving dynamics of the electrification landscape, as the end of federal tax credits and other incentives has impacted new EV demand. However, the used EV market is growing, driven by affordability, a broader selection of models, and rising fuel costs. According to Cox Automotive, approximately 213,000 new EVs were sold in the first three months of 2026, marking a sharp decline compared to the same period last year. The EV market share for the quarter stood at 5.8%, a decrease of about two percentage points from the previous year. This decline follows a peak in Q3 2025, when consumers rushed to purchase EVs before the tax credit expired. Cox’s director of industry insights, Stephanie Valdez Streaty, noted that the market is in transition, with sales expected to stabilize as the pull-forward effect of the tax credit wanes. Tesla remains a dominant player in the EV space, with its market share of the EV segment surpassing 50% in Q1. The company’s share of the overall car market also remained steady at 3.3%, matching the year-ago figure. Premium EVs, such as the BMW i5, have fared better than mass-market models, with JD Power reporting that EVs accounted for 26.4% of premium vehicle sales in the first half of 2026. In contrast, mass-market EVs now represent just 1.9% of sales, down from 4% in the previous year. The used EV market, however, is showing strong growth. Cox Automotive reported that 93,500 used EVs were sold in Q1, a 17% increase from the previous quarter and a nearly 12% rise compared to the first quarter of 2025. The used EV market share reached 2.#tesla #cox_automotive #stephanie_valdez_streaty #bmw_i5 #recurrent
