U.S. EV Sales Experience Consecutive Growth
The American electric vehicle (EV) sector appears to be recovering, demonstrating increased consumer interest despite the elimination of federal purchasing incentives. According to data from Cox Automotive, U.S. consumers purchased 262,649 new EVs during the third quarter of this year. This figure marks the second consecutive quarter of sales growth, following a noticeable dip in sales the previous year.
While the current sales volume is significantly lower than the 437,487 new EVs sold in the third quarter of the prior year—a period when many buyers rushed to utilize expiring federal tax credits—analysts suggest that this growth trend is likely to continue, primarily due to persistent high gasoline costs.
Trends in Used EVs and International Demand
The resurgence is also visible in the used EV market. In August, Americans purchased 44,350 used EVs, representing a 26% increase from July sales and a 15% rise compared to the same month a year earlier, according to Cox Automotive. A key factor fueling this used market surge is the discontinued Ford F-150 Lightning, which was canceled in late 2025 after years of moderate sales. Industry experts suggest that while the initial cost of a brand-new Lightning was too high for many buyers, the reduced price point of the used model makes it a compelling option.
The trend is not limited to the United States. In Europe, electric vehicle sales reached a record high of nearly 600,000 vehicles in September, according to Benchmark Mineral Intelligence. Globally, EV sales saw a 17% increase in September when compared to the preceding month.
Underlying Economic Drivers and Industry Improvements
The primary driver fueling the domestic rebound is the sustained high cost of gasoline. The average price for a gallon of gasoline across the nation has remained above $4 for several months, making electric vehicles considerably more economically attractive than traditional gasoline-powered automobiles, even when factoring in expenditures at public charging stations.
The long-term viability of the rebound is supported by continuous improvements from manufacturers. Automakers are introducing a wider variety of electric options in the U.S. market, including more affordable models. Examples of these advancements include a more budget-friendly next-generation electric pickup from Ford, a faster-charging electric SUV from Subaru, and a less expensive version of its popular SUV from Rivian.
Other Energy Sector Developments
Offshore Wind Permitting
In separate energy news, the Department of the Interior (DOI) has revived its challenge to offshore wind development. The DOI filed a request with a federal court seeking to reevaluate a crucial permit for the Revolution Wind project, which is located off the coasts of Connecticut and Rhode Island. This facility has been operational since the spring and contributes to the growing wind capacity that delivered 4,619 GWh of power to New England over the first nine months of the year. The DOI’s request is occurring amidst a lawsuit filed by an anti-wind group against Revolution, and its effect on the project’s operating permit is not expected for several months.
Fuel Price Projections
Regarding fuel costs, efforts to ease diesel shortages, such as a deal announced with Russia for the sale of millions of gallons of fuel, are not expected to significantly reduce diesel prices nationwide. Analysts caution that this is because Russian fuel exports have declined sharply over the last year due to attacks on its refineries by Ukraine. Furthermore, the International Energy Agency predicts that current market strains, exacerbated by the war in Iran, will continue to affect diesel prices through 2027.
