Electric vehicle (EV) sales in the U.S. reached record levels in the third quarter of 2024, with an 11% year-over-year increase, according to Kelley Blue Book. A total of 346,309 EVs were sold, marking a 5% jump from Q2 and bringing the EV market share to 8.9%, the highest on record. This is a significant rise from the 7.8% share in Q3 2023, signaling continued momentum despite a slowing pace of growth.
Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive, attributed the rise to various factors, including government incentives and manufacturer discounts. Streaty stated, “Despite a slowdown in year-over-year growth, EV sales in the U.S. continue to rise. We expect further adoption as more affordable EVs enter the market and as infrastructure improves.”
Incentives played a major role in the sales boost. On average, incentives accounted for more than 12% of EVs’ average transaction price (ATP) in Q3, significantly higher than the 7% industry-wide average. The “leasing loophole” allowed EV buyers to take advantage of government-supported incentives, further driving demand. Although EV prices rose by less than 1% year over year, the average price of an EV in Q3 was still over $57,000, approximately 19% higher than the industry-wide ATP of $48,000.
Tesla remained the market leader in Q3, with sales growing 6.6% after a challenging first half of the year. The launch of the Cybertruck contributed significantly to Tesla’s Q3 performance, with more than 16,000 units sold despite its six-figure price tag, averaging over $116,000. The Cybertruck outsold all other EVs except Tesla’s Model Y and Model 3.
General Motors (GM) also made significant strides, with EV sales surging nearly 60% in Q3, totaling 32,095 units. Strong sales from brands like Cadillac, Chevrolet, and GMC pushed GM to second place in the EV market. Hyundai Motor Group fell to third place with 29,609 EVs sold, followed by Ford, which sold 23,509 units. Notably, Honda and Acura saw a rise in EV sales, contributing over 15,000 units to the quarter, compared to zero sales a year ago.
Looking ahead, Cox Automotive expects continued growth in the U.S. EV market, driven by a broader range of EV models, more discounts, and better infrastructure. The company projects that it can easily achieve a 10% share of the EV market in the near future due to the growing availability of EVs and competitive pricing, which is attracting more buyers.
