European EV share climbs to 23.2 percent as the expired $7,500 US credit, looser rules, and fewer cheap models drag demand.
US electric vehicle sales fell 30.7 percent through the first nine months of 2026. The drop followed the early end of several federal clean-vehicle tax credits on September 30, 2025. EVs now make up just 6 percent of US new-car sales, down from 8.5 percent a year earlier.
Across the Atlantic, the picture is reversed. European EV share hit a record 23.2 percent through September, and buyers there have more electric models to choose from than American shoppers do.
2024 Volkswagen ID.4 Charging
The end of those federal purchase incentives is a big part of the story, but not the only one. Buyers rushed to close deals before the up-to-$7,500 new clean-vehicle credit and the $4,000 used EV credit stopped applying to vehicles bought after September 30, 2025.
Policy pressure has shifted in other ways too. The Trump administration has moved to roll back parts of federal vehicle fuel-economy and greenhouse-gas rules for future model years. Analysts say that eases some of the regulatory push that had supported big EV investment plans. Softening EV demand has already shown up in General Motors’ own sales figures this year.
Tesla held up better than the segment overall as its US sales dropped 14 percent through the first three quarters, well below the market’s 30.7 percent decline. That is a smaller decline, but it still means fewer Teslas sold than a year ago.
Hybrids are the clearest beneficiary. US hybrid sales climbed 23 percent through the first three quarters and now account for 15.6 percent of total sales. Buyers who still want better fuel economy are choosing a cheaper, charger-free compromise over a full EV.
Lotus Emeya Charging
More than 150 EV models were on sale in Europe during the first half of 2026, up from roughly 100 in 2024. A growing group of new small EVs now targets starting prices around or below €25,000 (about $28,000), a bracket the US market barely serves at all.
Several European countries still run purchase incentives or tax breaks on top of that broader lineup. Higher fuel prices across the continent give buyers an extra reason to switch. The combination pushed EV share from 17.7 percent a year earlier to this year’s 23.2 percent.
That growth builds on a trend already visible by the end of last year, when EVs outsold pure gas cars in Europe for the first time. Nine months of 2026 data confirm it was not a one-month blip.
Not every automaker is riding the same wave on both continents. Volkswagen’s new low-cost EVs have already pulled in nearly 150,000 orders in Europe. In the US, the segment Kia’s $31,000 EV3 competes in remains one of the few bright spots for affordable electric models stateside.
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