U.s. Ev Market Shows Signs Of Maturity As New And Used Sales Rebound In August

The U.S. electric vehicle market showed further signs of becoming more balanced in August, with both new and used EV sales increasing from July as inventory levels moved closer to those of gasoline-powered vehicles.

Lower-priced electric cars also captured a larger share of the new-vehicle market, helping narrow the price gap between EVs and internal-combustion vehicles. At the same time, an increasing number of off-lease electric vehicles entered the used market, giving shoppers more choices and supporting stronger used EV sales.

The latest market data points to an EV market that is gradually becoming less dependent on Tesla while moving toward more sustainable supply, demand and pricing conditions.

New EV Sales Rise in August

Estimated U.S. new EV sales reached 78,895 vehicles in August, up 2.5% from July but down 46.9% compared with August 2025.

The sharp year-over-year decline was largely expected because August 2025 benefited from unusually strong EV demand ahead of the expiration of federal EV tax incentives. Despite the difficult comparison, several automakers recorded significant monthly gains.

EVs represented 5.7% of total new-vehicle sales in August, essentially unchanged from July.

Tesla remained the largest EV brand, with an estimated 40,816 sales. However, Tesla’s sales declined 3.8% from July, reducing its share of U.S. EV sales to 51.7%.

Toyota continued to gain ground. Its EV sales jumped 34.9% month over month to 4,964 vehicles, with the Toyota bZ accounting for much of the increase. Sales of the bZ climbed 39.6% from July.

Chevrolet, Cadillac and Kia also posted solid monthly increases, with sales rising 30.3%, 13.1% and 12%, respectively.

The broader trend is important: growth is increasingly coming from a wider selection of automakers rather than being concentrated almost entirely around Tesla.

Used EV Sales Jump 25.9%

The used electric vehicle market delivered an even stronger performance in August.

Used EV sales reached approximately 44,350 units, an increase of 25.9% from July and 14.7% from a year earlier. EVs accounted for 2.8% of used-vehicle sales.

Growing numbers of off-lease EVs are entering the market, increasing the supply of used electric cars available to consumers. That additional inventory is arriving at a time when demand for more affordable EVs remains relatively strong.

Tesla continued to lead the used EV market, with used Tesla sales increasing 26.5% from July. Nearly 30% of all used EVs sold in August were Tesla models.

However, other automakers also recorded substantial gains. Used Nissan EV sales increased 45.1%, while Cadillac and Kia rose 37.7% and 32.1%, respectively.

The Tesla Model 3, Tesla Model Y and Ford Mustang Mach-E recorded some of the largest increases in sales volume compared with July.

New EV Inventory Moves Closer to ICE Vehicles

New EV inventory also became more balanced in August.

The average new EV inventory stood at 78 days of supply, down 9.6% from July but still 24% higher than a year earlier. More importantly, the gap between EV and ICE+ inventory narrowed to just two days, the smallest gap recorded this year.

Inventory remains very different from one automaker to another.

Subaru had the lowest inventory level among major brands, with just 26 days of supply, down from 47 days in July. Toyota and Porsche also experienced significant reductions in inventory, although both remained above the overall industry average.

By contrast, Cadillac, Mercedes-Benz and Audi were among the brands where inventory increased during August.

The narrowing inventory gap suggests automakers are moving closer to a market where EV supply is more closely aligned with consumer demand.

Used EV Inventory Reaches ICE+ Parity

The used EV market showed an even more significant inventory shift.

Used EV days’ supply fell to 42 days in August, down 15.4% from July. For the first time this year, used EV inventory reached parity with ICE+ vehicles.

Although used EV supply remained 20.2% higher than a year earlier, the monthly decline indicates that increasing inventory is being absorbed by consumers.

Used Hyundai EVs had among the lowest availability, at 36 days of supply. Used Cadillac and BMW EV inventory also tightened during the month.

Mercedes-Benz EVs had the highest supply among major brands, at 57 days.

The combination of rising off-lease returns and falling days’ supply suggests the used EV market is entering an important transition period. More vehicles are becoming available, but demand is also strong enough to prevent inventory from building rapidly.

New EV Prices Continue to Move Lower

EV affordability also improved in August.

The average transaction price for a new electric vehicle fell to $54,754, down 1.3% from July and 2.8% from a year earlier.

Average incentives were equivalent to approximately 12% of the transaction price, or about $6,594 per vehicle. Incentives declined 2.2% from July and were 19.9% lower than a year earlier.

Most importantly for shoppers, the average EV price premium over ICE+ vehicles narrowed to $4,847, or 9.7%.

That gap has been shrinking as lower-priced EVs account for a larger portion of overall sales.

Models such as the Toyota bZ and Chevrolet Bolt helped pull the average transaction price lower. Transaction prices for several popular EVs also declined, including the Tesla Model 3, whose average transaction price fell 1.9% from July.

If lower-priced EVs continue gaining market share, the gap between electric and gasoline-powered vehicles could continue to narrow.

Used EV Prices Remain Above Last Year

Used EV prices declined slightly in August but remained significantly higher than a year ago.

The average used EV listing price was $37,441, down 1% from July but still 8.2% higher than August 2025.

The average used EV premium over ICE+ vehicles narrowed to 7.8%, helped by increased activity from lower-priced brands and models.

Tesla prices were relatively stable during the month, with average listing prices increasing 0.7%. Tesla nevertheless maintained close to 30% of the used EV market.

Instead, much of the overall price decline came from non-Tesla models.

For example, Cadillac LYRIQ sales increased 46% month over month while its average price declined 2.6%. Chevrolet Blazer EV sales climbed 44% while average prices fell 5.7%.

This combination of rising sales and declining prices could make more used EVs increasingly attractive to buyers looking for a lower-cost entry into electric vehicle ownership.

What the August EV Market Data Means

The August numbers highlight several important changes in the U.S. EV market.

New EV sales increased from July despite a difficult year-over-year comparison. At the same time, Tesla’s share continued to decline as other automakers gained sales.

Inventory is another major indicator. New EV days’ supply is now only two days above ICE+ vehicles, while used EV inventory has reached parity. That represents a significant shift from the oversupply concerns that have affected parts of the EV market.

Pricing is moving in the same direction. New EV transaction prices declined, while the premium over comparable ICE+ vehicles fell below 10%. Used EV prices also eased slightly as lower-priced models gained market share.

The growing number of off-lease EVs could become particularly important in the months ahead. As more three- and four-year-old electric vehicles enter the used market, consumers should have access to a broader selection of models at lower prices.

EV Market Outlook

The U.S. EV market is now entering a period where supply, demand and pricing will be closely watched.

The effects of last year’s tax-credit-driven sales surge are fading from year-over-year comparisons, making monthly trends more useful for understanding current market conditions.

Whether the recent improvement continues will depend on several factors, including EV pricing, incentives, inventory management and the market’s ability to absorb a growing supply of used electric vehicles.

For consumers, the expanding used EV market and narrowing price gap with gasoline vehicles could be among the most important developments to watch. For automakers, maintaining demand while keeping EV inventory under control will remain a key challenge.

August’s data suggests the U.S. EV market is continuing to mature, with a broader range of manufacturers contributing to sales growth and the new and used markets moving closer to the supply-and-demand patterns seen across the wider automotive industry.

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