With uncertainty about the Iran war continuing and gas prices on the rise, more Americans are turning to electric vehicles. Interest in — and sales of — EVs increased in the first quarter, according to the data firm Cox Automotive.
“Gas prices don’t translate to sales immediately, but it definitely translates into consideration,” Cox Automotive Director of Industry Insights Stephanie Valdez Streaty said Wednesday during an online EV symposium hosted by the Electrification Coalition.
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With uncertainty about the Iran War continuing and gas prices on the rise, more Americans are turning to electric vehicles. Interest in — and sales of —EVs both increased in the first quarter, according to the data firm Cox Automotive
“Gas prices don’t translate to sales immediately, but it definitely translates into consideration,” Cox Automotive director of industry insights Stephanie Valdez Streaty said Wednesday during an online EV symposium hosted by the Electrification Coalition
Interest in new electric vehicles was up 16% through March compared with the last quarter of 2025, she said, after the Trump administration ended a $7,500 federal tax credit and EV sales plummeted. New EV sales for the first three months of 2026 have rebounded to about 215,000
Interest in used EVs increased 30% in March and more than 100,000 used EVs were sold — a quarterly record
Interest in new electric vehicles was up 16% through March compared with the last quarter of 2025, she said, after the Trump administration ended a $7,500 federal tax credit and EV sales plummeted.
Valdez Streaty said new EV sales for the first three months of 2026 have rebounded to about 215,000, driven by strong sales of the Toyota BZ and Tesla Model Y. Rivian, Cadillac and Lexus all experienced year-over-year growth, she said.
The average transaction price for a new electric vehicle in March was $54,508 compared with about $50,000 for a new gas-powered vehicle, according to Cox. Valdez Streaty said it was the lowest price difference on record between electric and traditionally powered vehicles, helping to boost EV sales.
High purchase prices are the No. 1 barrier preventing Americans from adopting electric vehicles, according to AAA.
“We’re seeing monthly sales increase, but what’s holding the EVs’ overall numbers back is we’re losing a lot of models,” said Loren McDonald, CEO and chief analyst at the EV charging firm Chargeonomics.
Acura, Chevrolet, Dodge, Genesis, Honda, Hyundai, Kia and Nissan are among the brands that have discontinued existing models and canceled or scaled back others that were planned following the Trump administration’s imposition of tariffs and last September’s end of the federal tax credit enacted during the Biden administration.
While new EVs are experiencing a bit of a rebound, used electric sales are rising even more quickly. Interest increased 30% in March, according to Valdez Streaty, and more than 100,000 used EVs were sold in Q1 — a quarterly record.
The Manheim Used Vehicle Value Index reported this week that EV sales increased 20% in the first quarter compared with a year earlier, with values rising faster than for non-EVs. EVs have experienced the highest price gains so far this year, according to the index. They are up 7.9% compared with non-EVs, which are up 6%.
The index also reported the surprise reversal of a longstanding trend caused by fears about battery health: retention values for three-year-old EVs are higher than they are for hybrids and gas-powered vehicles.
“With rising prices for everything and consumers less likely to spend, a lot of people who are two- or three-car households in the suburbs who have been thinking of getting an EV and don’t want to spend $50,000 or $60,000, maybe they’ll spend $20,000 or $30,000 on a three-year-old Tesla,” McDonald said.
In the coming years, Cox Automotive expects used EVs to become even more affordable as the cars people purchased before the end of the federal tax credit come off lease.
Valdez Streaty said Cox expects 300,000 EVs to come off lease in 2026, 600,000 in 2027 and as many as 660,000 in 2028.
“This will provide consumers a wide range of EVs at different price points and make them more affordable,” she said.
