New EV Sales Slide in February, but High Fuel Prices May Shift Consumer Sentiment: Report

Sales of used electric vehicles rose sharply in February, according to Cox Automotive.

A Volkswagen ID.4 electric vehicle charges at a shopping mall parking lot in Torrance, Calif., on Feb. 23, 2024. Patrick T. Fallon/AFP via Getty Images

Sales of new electric vehicles (EVs) trended sharply lower in February versus the prior year, but a wave of new EV launches scheduled for 2026—and painful prices at the gas pump—could spur increased demand for electric automobiles, according to a new report.

There were just under 69,000 new EVs sold in February, automotive industry insights and technology provider Cox Automotive said in its monthly EV market report, released on March 16. Sales were down by nearly 27 percent from February 2025, though they ticked up by 5.8 percent from January.

Automakers and dealerships are still adjusting to a new paradigm and gauge consumer appetite for new EV sales following the Sept. 30, 2025, expiration of a $7,500 tax credit that spurred record EV sales in the preceding months.

“As the EV market enters the spring selling season, it appears to be moving through an ongoing normalization phase, with manufacturers and retailers still working to identify sustainable, natural demand levels,” Stephanie Valdez Streaty, director of industry insights at Cox Automotive, wrote in the report.

Sales of used EVs, meanwhile, rose sharply in February, to 30,879 vehicles, a 28.8 percent jump from the same period in 2025 and 4.2 percent increase from January.

Waning consumer interest for new EVs has roiled automakers’ long-term development strategies. On Mar. 12, Honda Motor Co. Ltd., for example, announced it was pivoting away from EVs in favor of hybrid-electric vehicles and canceling the planned launch of three electrified models in the United States due to the impacts of tariff policies and intense pressure from competing markets. Honda projected its EV losses could total more than $15 billion for the fiscal year ending March 31.

Tesla, meanwhile, announced in early October that it was launching more affordable versions of its Model Y sport utility vehicle and Model 3 sedan in an effort to reduce the cost of ownership for EVs. To that end, the Austin, Texas-based EV maker said in late January that it was sunsetting production of its Model X and Model S vehicles, both of which have starting costs approaching $100,000.

Tesla remains the leader in new EV sales volume with a 56 percent U.S. market share in February, Cox Automotive reported. A month prior, Tesla accounted for nearly one-third of the total EV market share. Chevrolet posted the largest gains in EV sales for February, with month-over-month sales volume surging 71 percent, Cox Automotive noted.

Prices for new EVs continue to trend downward. The average transaction price for new EVs in February of $55,300 was down by 1.4 percent from February 2025 and 0.6 percent from January, Cox Automotive said.

Depreciation has plagued resale pricing on used EVs. The average list price in February was $34,821, down by 8.5 percent year over year, and nearly 2 percent from January. However, with the 2026 launch of new models and skyrocketing fuel prices—regular fuel is averaging $3.91 per gallon, while diesel is at $5.15, the American Automobile Association reports—consumers may start reconsidering EV ownership.

“A wave of new EV launches in 2026 could broaden consumer choice and support volume growth beyond the current top brands,” Valdez Streaty said.

“Rising gasoline prices may also increase consideration for EVs among shoppers weighing total cost of ownership.”