New EV sales declined year over year in February while used EV demand rose, as prices fell and inventory tightened across both segments.
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Near-term EV market performance is expected to remain uneven, while elevated new-vehicle inventory and softer consumer demand may continue to pressure sales and pricing.
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November EV data shows sales falling to multi-year lows as inventory builds and pricing softens following the expiration of federal tax credits.
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The decline in the average transaction price was mostly expected, as sales of expensive EVs fell sharply as government incentives expired Sept. 30.
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As more tariffed products replace non-tariffed inventory, prices are tracking higher, which should lead to slower sales
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EV buyers took advantage of the final federal tax credit days, while average prices edged up for new EVs and continued to decline for used models.
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Average transaction prices broke the $50,000 barrier, driven by wealthier buyers and higher-end vehicles.
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But most OEMs record low-volume sales, which means EV profitability remains a distant dream for nearly every automaker.
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Consumers are buying up electric vehicles ahead of the Inflation Reduction Act’s tax credit expiration amid strong demand and tight inventory.
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Commentary: The average price of a new vehicle in the U.S. is expected to break the $50,000 barrier in 2025, as automakers begin to pass along tariff costs and the market sells a larger share of higher-end vehicles.
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