The domestic EV market is splitting into two stories: the new-car side continues to contract, while the used side is expanding at a rate that suggests the secondhand market is doing more to broaden EV adoption than any current new-product launch.
Cox Automotive’s May 2026 EV Market Monitor, published June 16, reports new EV sales of 84,746 units, down 21.9 percent from a year earlier. Used EV sales reached 42,923 units, up 24.7 percent year-over-year. The divergence between the two channels is the widest Cox has recorded since federal tax credits expired last September.
New EV sales accounted for 5.7 percent of total new-vehicle sales in May, a modest improvement from April but well below the year-ago figure. Tesla led new-EV volume with 40,578 units, a 47.9 percent share of the segment, down from April as Hyundai, Cadillac, Toyota, and Subaru posted stronger monthly gains. At the model level, the Tesla Model Y and Model 3 dominated, with the Hyundai Ioniq 5, Ford Mustang Mach-E, and Toyota BZ forming the next tier.
The year-over-year decline of 21.9 percent, while substantial, was the smallest since the federal incentive removal. Cox characterizes the May result as further stabilization following softer April conditions, though the directional trend remains negative on an annual basis. The average transaction price for a new EV fell to $54,532, down 4 percent year-over-year, marking the 11th consecutive month of annual price declines. Incentives remained elevated at 14 percent of ATP, approximately $7,611 per vehicle.
Used EV sales held 2.8 percent market share in May. Tesla led the used segment with 15,353 units sold through non-Tesla dealers, followed by Hyundai, Chevrolet, Ford, and BMW. Month-over-month gains were broad-based, with Hyundai, BMW, Volkswagen, and Cadillac posting strong growth. The average listing price for a used EV was $37,083, up 3.8 percent month-over-month and 3.1 percent year-over-year, a reversal of the pricing trend on the new side.
Days’ supply figures reinforce the two-market split. New EV inventory edged lower to 71 days in May, more than 40 percent below year-ago levels and now below ICE+ days’ supply. Used EV days’ supply fell to 31, down 7.5 percent month-over-month and 23.3 percent year-over-year, the largest gap between used EVs and ICE+ since September 2025. The used EV market is turning inventory faster than the broader used segment, which Cox attributes to improving supply from off-lease returns and trade-ins building depth across more brands and price points.
The Cox report projects that new EV sales will trend slowly higher as new products reach the market and incentives continue to support demand, though the path forward remains uneven. The used market, by contrast, is described as far more consistent and predictable, with improving availability and growing interest in more affordable EVs expected to support gradual expansion.
What the data suggests is that the domestic EV market is no longer a single story. The new-car segment is stabilizing around 5.7 percent share after a sharp post-incentive contraction. The used segment is expanding at a 25 percent annual rate and tightening inventory faster than ICE+. If broadening consumer access is the goal, the used market is doing the work.
Source: Cox Automotive. Images courtesy of Cox Automotive.
