US Electric Vehicle (EV) sales hit a new record in August, with 146,332 EVs sold, as reported by Cox Automotive’s Kelley Blue Book. This marked a 9.9% share of total new car sales, the highest to date. Analysts predict that the third quarter of 2025 will be the strongest ever for EV sales in the US, especially with the federal EV tax credit set to expire on September 30. The previous record for EV sales was in the fourth quarter of 2024, with 365,824 EVs sold.
In August, the average transaction price (ATP) for an EV rose to $57,245, a 3.1% increase from July. However, year-over-year, EV prices remained relatively stable, showing only a marginal 0.1% decrease. The surge in EV sales also contributed to an increase in the overall market’s ATP.
Despite lower incentives compared to July, EV buyers still received significant discounts averaging over $9,000 in August, which is equivalent to 16% of the ATP. This incentive rate is more than double that of the overall auto market and has increased from 13.6% compared to a year ago.
Tesla, a dominant player in the US EV market, saw some challenges in August. The company’s ATP increased by 2.9% to $54,468, yet it was down 5.5% year-over-year. Tesla’s sales also decreased by 6.7% compared to the previous year, resulting in the company’s market share dropping to 38%, its lowest point to date.
Stephanie Valdez Streaty, a senior analyst at Cox Automotive, highlighted the impact of new product offerings on EV sales. She mentioned that Tesla’s Model Y update helped slow the sales decline, but the market is now flooded with fresh EV options from mainstream competitors, giving consumers more choices. The current surge in EV sales is attributed to product innovation, motivated dealers, and the urgency ahead of the EV tax credit phase-out.
As the EV market continues to evolve, it’s essential for consumers to stay informed about the latest trends and offerings. With the federal solar tax credit set to end this year, now is a crucial time for those considering going solar to take action. EnergySage, a free service that connects consumers with trusted solar installers, can help individuals navigate the solar installation process and save money in the long run. By leveraging EnergySage’s platform, consumers can access personalized solar quotes and receive guidance from Energy Advisors every step of the way.
In conclusion, the EV market in the US is experiencing significant growth, driven by innovation, competition, and changing consumer preferences. With the impending expiration of the federal EV tax credit and solar tax credit, now is the time for consumers to explore sustainable transportation and energy options for a greener future.
