October marked a major reversal in the electric vehicle market as the federal EV tax credit expired, ending three months of accelerated sales. Shoppers rushed to secure incentives before the deadline, but once it passed, demand dropped and inventories rose across both new and used EV segments.

EV Sales Fall Sharply in October

New EV Sales

New EV sales totaled an estimated 74,835 units, down 48.9% from September’s record and 30.3% year over year. EV share of total U.S. sales fell to 5.8%, down from September’s 11.6%.

The decline spanned both luxury and non-luxury categories:

• Luxury EV sales: down 39%

• Non-luxury EV sales: down 65%

Top OEMs by volume:

• Tesla: 40,650

• Chevrolet: 5,910

• Ford: 4,912

• Cadillac: 4,344

• Hyundai: 2,429

Despite a 35.3% month-over-month drop, Tesla’s share climbed to 54.3% as competitors saw even sharper declines. Rivian posted the mildest decline among major EV manufacturers at 14.7%.

Used EV Sales

Used EV sales reached 31,610 units, down 20.4% from September but up 36.2% year over year. Market share fell to 1.9%, a one-point decrease.

Top brands by used EV sales:

• Tesla: 11,927

• Ford: 2,273

• Chevrolet: 1,919

• Audi: 1,754

• BMW: 1,708

EV Prices Increase Across New and Used Segments

New EV Transaction Prices

The average transaction price (ATP) for new EVs increased to $59,125, up 1.6% month over month and 2.3% year over year. The price premium over ICE+ vehicles widened to $9,359.

Incentives dropped to their lowest level of 2024:

• 11.1% of ATP

• About $6,546 per vehicle

Brands with the highest month-over-month ATP gains:

• Porsche: +29.5%

  • Taycan: +35%

  • Macan EV: +1.3%

• Chevrolet: +5.4%

• Cadillac: +5.1%

Tesla’s ATP dipped 1.1% to $53,526, continuing to anchor the lower end of the EV price spectrum.

Used EV Listing Prices

Used EVs saw a sharp 8.6% month-over-month price jump, reaching an average listing price of $37,538 —still 0.7% below year-ago levels. The increase reopened the price gap with ICE+, which is now $3,561, after near parity in September.

Brands with the largest increases:

• Audi: +12.2%

• Tesla: +9.5%

• Subaru: +9.5%

• Chevrolet: +7.8%

• Kia: +4.8%

Despite broad increases, 42 models remained under $30,000, with the Nissan Leaf one of the lowest-priced at $12,166.

Days’ Supply Rises for Both New and Used EVs

New EV Days’ Supply

New EV inventory jumped to 79 days in October, up 63.8% from September and down 28% year over year. This follows September’s three-year low of 48 days.

OEMs with the highest supply:

• GMC: 91 days

• Cadillac: 89 days

• Ford: 71 days

Leanest inventory:

• Subaru: 8 days

Toyota posted the largest month-over-month increase, rising 33 days to reach 43 days' supply.

Used EV Days’ Supply

Used EV supply increased to 39 days, up from 30 days in September. Inventory remained below ICE+ levels for the eighth time this year.

Supply by brand:

• Tightest: Tesla at 29 days

• Highest: Genesis at 56 days

• GMC and Honda: 55 days each

• Volkswagen saw the largest increase, adding 19 days to reach 40 days of supply.

Even with October’s rise, used EV supply remained 19.2% lower than a year ago.

Note: Tesla figures reflect dealer-available inventory, not direct-to-consumer stock.

Market Outlook

October’s sharp reversal signals a recalibration period as EV demand adjusts to post-incentive conditions. The shift is expected to differentiate automakers with strong cost structures from those that depend more on subsidies. Production discipline, competitive pricing, and a focus on consumer confidence will be key as the market settles into a more natural growth trajectory.