February underscored continued adjustment in the EV market: New-vehicle sales declined year over year, while used EV demand increased, inventory tightened from January, and prices declined across both new and used segments, further narrowing EV-to-ICE premiums.

Sales Show Big Dips

New EV Sales

February new EV sales totaled an estimated 68,951 units, down 26.8% year over year but up 5.8% month over month. EVs accounted for 5.8% of total new-vehicle sales.

Tesla remained the volume leader with 38,500 units, followed by Hyundai, Chevrolet, Toyota, and Cadillac. Tesla sales declined 4% month over month, reducing its market share to 55.8% from 60.5% in January.

Chevrolet was the standout performer, with volume up 70.7% month over month, moving it into the top three. Hyundai and Toyota also posted gains. Ford declined slightly, while Nissan saw a sharper pullback.

Used EV Sales

Used EV sales totaled 30,879 units in February, up 28.8% year over year and 4.2% month over month. Market share held at 2%.

Tesla led used EV sales with more than 12,133 retail units sold at non-Tesla dealerships, followed by Chevrolet, Ford, BMW, and Hyundai. Most brands recorded increases, while declines were concentrated among Audi, Volkswagen, Mercedes-Benz, and BMW.

Prices

New EV Average Transaction Price

The average transaction price (ATP) for new EVs was $55,300 in February, down 1.4% year over year and 0.6% month over month. The EV premium over ICE+ vehicles narrowed to $6,532, the lowest level on record.

Incentives increased 13.8% to an average of $7,870, or 14.2% of ATP, up from 12.4% in January.

Among high-volume brands, Tesla and Kia recorded month-over-month ATP gains, while Chevrolet, Cadillac and Ford posted the largest declines.

Used EV Listing Price

The average listing price for used EVs was $34,821, down 8.5% year over year and 1.9% month over month. The price premium over ICE+ vehicles narrowed to $1,334.

Eighteen of 26 brands now have lower average used EV prices than comparable ICE+ vehicles, with Porsche, Lexus and Toyota showing the widest gaps.

Among high-volume brands, Tesla declined 1.1% to $31,491, while Mercedes-Benz, Hyundai and Audi recorded the largest month-over-month declines. Cadillac increased 5.0% to $56,816.

Supply

New EV Days’ Supply

New EV days’ supply fell to 130 days in February, down 27% month over month but still 23.7% higher than a year earlier. The gap between EV and ICE+ supply narrowed to 41 days from 71 days in January.

Ford and Chevrolet carried the highest supply levels, while Toyota and Mercedes-Benz remained the lowest.

Used EV Days’ Supply

Used EV days’ supply declined to 42 days, down 9.8% month over month and 10.2% year over year, slightly above ICE+ levels for the first time in nearly a year.

Supply tightened across most high-volume brands, with Hyundai and Ford posting the largest declines. Audi was an exception, with supply increasing. Tesla had the lowest days’ supply among major brands at 35.5 days, based on vehicles available through traditional dealerships.

Outlook

The EV market continues to normalize as manufacturers and retailers work to align supply with demand. New EV launches expected in 2026 may expand consumer choice and support future volume growth. Rising gasoline prices may also influence EV adoption as consumers evaluate the total cost of ownership.