The US plug-in electric car market experienced significant changes over the past 12 months, primarily due to the expiration of the $7,500 federal tax credit at the end of September 2025.
First, sales volume surged to a new high, then sales collapsed, dragging many existing and upcoming EV models underwater. Now, the market is in the process of a rebound (at least some brands are rebounding).
Meanwhile, hybrid car sales continue to increase quickly, reaching all-time records. A big part of that is the increasing fuel costs.
EV Share In Q2 2026
According to the US Energy Information Administration (EIA), in Q2 2026, all-electric cars represented 6% of new light-duty vehicle sales (down from 7% a year earlier). The share of plug-in hybrids amounted to 1.4% (down from 1.9% a year earlier).
At the same time, non-rechargeable hybrids expanded to roughly 16% (up from 13% a year ago).
Quarterly US light-duty vehicle sales by powertrain (1Q16-2Q26): Percentage of sales (Image credit: US Energy Information Administration)
The report says that all-electric cars reached a record share of 12% in September 2025, as buyers sought to take advantage of the ending $7,500 federal tax credit.
Cumulatively, electric cars represent just 2% of the registered light-duty vehicles in the US. That’s one in 50. We are still in the early days by that metric.
We are cautiously optimistic about the EV market rebound. EV technology improves, which remains the primary fundamental factor. A supporting element is higher fuel costs, which prompt more drivers to seek alternatives (hybrids are the major beneficiary here). Additionally, public charging infrastructure is getting better, which means fewer barriers.