US EV Sales Hit Record High in August Amid Tesla’s Decline

Key Takeaways

August saw 146,332 EVs sold in the US, marking a record 9.9% share of total new car sales.
The average transaction price for EVs rose to $57,245, with buyers enjoying average discounts of over $9,000.
Tesla’s market share fell to 38%, its lowest ever, as new competitors enter the market.

Record EV Sales in August

US electric vehicle (EV) sales reached a new high in August, with 146,332 units sold, according to data from Cox Automotive’s Kelley Blue Book. This represented a 9.9% share of total new car sales, up from 9.1% in July. Analysts predict that Q3 2025 could become the strongest quarter for EV sales in US history, driven largely by an expected surge before the federal EV tax credit expires on September 30.

The average transaction price (ATP) for EVs increased to $57,245 in August, which is 3.1% higher than July’s revised ATP of $55,562. Year-over-year, prices were relatively stable, showing a slight decrease of 0.1%. This rise in EV prices contributed to an uptick in the overall market’s ATP as well.

Incentives for EV purchases remained significant, providing buyers with average discounts exceeding $9,000—equivalent to 16% of the ATP. This is notably more than double the incentive rate across the broader automotive market and up from 13.6% the previous year.

Tesla’s Position Under Pressure

Tesla continues to lead the US EV market, but it is facing increasing competition. The company’s ATP rose by 2.9% in August to $54,468 but was still down 5.5% from the previous year. Tesla’s sales decreased by 6.7% year-over-year, leading to a drop in its market share to 38%, the lowest it has ever experienced.

Stephanie Valdez Streaty, a senior analyst at Cox Automotive, remarked on the changing landscape. She noted that while Tesla’s Model Y update has mitigated some sales decline, fresh offerings from competitors are presenting consumers with more choices. The surge in EV sales is attributed to product innovation, proactive dealers, and a sense of urgency ahead of tax credit expirations under the Inflation Reduction Act (IRA).

The rising competition and the pressure on Tesla underscore the dynamic nature of the EV market, which is rapidly evolving to meet consumer demands. As the landscape shifts, the focus remains on product development and strategic pricing to retain market share in an increasingly crowded field.

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