January marked a reset for the EV market. New-vehicle demand declined and inventory expanded, while used EV sales increased and supply tightened, according to figures from Cox Automotive released Feb. 13. Pricing moved lower in both segments, narrowing EV-to-ICE premiums.

Sales

New EV Sales

January's new EV sales totaled an estimated 66,276 units, down 29.9% year over year and 20.4% month over month. EV share of total new-vehicle sales was 6.0%.

The top five brands by volume were Tesla (40,100), Hyundai (3,074), Toyota (2,794), Cadillac (2,716), and Rivian (2,516). Tesla volume fell 17% month over month, but its market share increased to 60.5%, up from 57.3% in December, as most competitors posted steeper declines. Ford, which ranked second in December, saw volume drop 56.8% to 2,174 units and fell out of the top five. Toyota was a notable exception to the broader decline, with sales up 34.5% month over month. Lexus, Audi, and Subaru also recorded gains.

Used EV Sales

Used EV sales reached 31,503 units in January, up 21.2% year over year and 20.8% from December. Used EV market share rose to 2.1%.

Tesla led with 12,416 vehicles, followed by Audi (2,002), Ford (1,995), Chevrolet (1,959), and BMW (1,842). Most brands posted month-over-month increases. Cadillac, Rivian, Porsche, and GMC recorded modest declines. Audi replaced Nissan in the top five, with sales up 63.4% month over month.

Prices

New EV Average Transaction Price

The average transaction price (ATP) for new EVs was $55,715 in January, down 0.6% year over year and 3.1% month over month. The EV premium over ICE+ vehicles narrowed to $7,098, the smallest gap since July 2025.

Incentives averaged $6,918, or 12.4% of ATP, down from 18.3% in December and below the 2025 full-year average of 13.7%. Tesla’s ATP declined 2% to $52,628. Among high-volume brands, Mercedes-Benz (+7.9%) and Ford (+6.6%) recorded the largest month-over-month ATP increases, while Volvo (-23.5%) and Audi (-3.8%) saw the steepest declines.

Used EV Listing Price

The average listing price for used EVs was $35,442, down 5.1% year over year and 2.5% month over month. The price premium over ICE+ vehicles narrowed to $1,376, down from $2,591 in December.

Among high-volume brands, Nissan (-3.2%), Kia (-2.8%), and Mercedes-Benz (-2.3%) recorded the largest month-over-month price declines. Audi increased 4.8% to $39,502 as sales rose. Tesla prices edged up 0.6% to $31,760.

Supply

New EV Days’ Supply

New EV days’ supply increased to 168 days in January, up 55.8% year over year and 24.8% month over month. The gap between EV and ICE+ days’ supply widened to 71 days, compared with 59 days in December.

At 168 days, new EV supply reached its highest level since July 2024 and is nearly four times higher than September’s 46-day low. EV supply was below ICE+ levels as recently as late October; that gap has since reversed by about 78 days.

Used EV Days’ Supply

Used EV days’ supply declined to 43 days, down 11.2% year over year and 12.1% month over month. Used EV supply has remained below ICE+ levels for 10 consecutive months.

Supply ranged from 35 days (Audi and Tesla) to 62 days (Porsche). Audi recorded the largest month-over-month decline, down 23 days, reflecting stronger sales. Tesla figures reflect vehicles available through traditional dealerships and exclude Tesla-owned outlets.

Outlook

Near-term EV market performance is expected to remain uneven. Elevated new-vehicle inventory and softer consumer demand may continue to pressure sales and pricing. Used EVs are likely to remain comparatively stronger, supported by improving affordability and narrowing price gaps versus ICE+ vehicles.

Market momentum will depend on production discipline, targeted incentive strategies, and sustained consumer interest in more affordable EV models without further expanding inventory.