According to estimates from Kelley Blue Book, electric vehicle (EV) sales in the U.S. grew by 11% year-over-year in the third quarter and reached record highs for both volume and market share.

From the latest counts compiled by Cox Automotive, an estimated 346,309 EVs were sold in Q3 2024, a 5% increase from Q2. The EV share of sales in Q3 hit 8.9%, the highest level recorded and an increase from 7.8% in Q3 2023.

“While year-over-year growth has slowed, EV sales in the U.S. continue to march higher,” Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive, said. “The growth is being fueled in part by incentives and discounts, but as more affordable EVs enter the market and infrastructure improves, we can expect even greater adoption in the coming years.”

For example, GM Envolve and Ford Pro are two of many automaker divisions providing starter kits, incentives, and discounts for customers and fleets transitioning to EVs.

EV incentives and discounts were elevated in Q3, which helped fuel higher sales. In Q3, incentives averaged more than 12% of the average transaction price (ATP), much higher than the industry-wide average of approximately 7%.

Rising Prices, Tesla’s Cybertruck Surge, and GM’s Milestone

Electric vehicle prices were higher year-over-year in Q3 but by less than 1%. The average cost for an EV in Q3 was just over $57,000, a premium of approximately 19% compared to the industry-wide ATP of just over $48,000.

In 2024 Q3, Tesla reversed its earlier sales decline, achieving a 6.6% increase primarily due to the introduction of the Cybertruck.

Despite an average transaction price exceeding $116,000 in September, as estimated by Kelley Blue Book, Tesla sold over 16,000 Cybertrucks during this period. The Cybertruck outsold every other available EV except for two — Tesla’s popular Model Y and Model 3.

General Motors EV sales jumped significantly in Q3, up nearly 60% to 32,095. While still a distant second from Tesla, GM improved its standing in the EV race due to strong sales from three of its four core brands — Cadillac, Chevrolet, and GMC.

In October 2024, GM surpassed 300,000 electric vehicles sold in the U.S. since 2016, rising to more than 370,000 units sold. Although the gradual upward trend has been tracked within the last decade, GM’s EV sales have increased significantly in the past two years, with more than half of sales occurring between 2022 and 2024.

More notable shifts among major automakers:

• Hyundai Motor Group fell behind GM and into third place, with sales generally flat year-over-year at 29,609.

• Ford was fourth in sales with 23,509.

• Honda and Acura contributed more than 15,000 EV sales in Q3 due to two new models. A year ago, American Honda EV sales were zero.

Electric Vehicle Market Poised for Breakthrough

Cox Automotive had anticipated 2024 to be a “year of more” for electric vehicles in the U.S., predicting an increase in product offerings, sales, discounts, and consumer interest.

With infrastructure steadily improving, a more comprehensive range of EV models hitting the market, and competitive deals available, the company projects continued growth in the months ahead. A 10% market share now is within striking distance.