Ahead of Tesla Inc's (NASDAQ:TSLA) first-quarter delivery report, the electric vehicle giant may have some good news when it comes to its home U.S. market. The good news comes of course, with bad overall news for the sector.

U.S. EV Sales Down 28% In Q1, But Tesla A Winner

EV sales in the United States were down 28% in the first quarter, but recent shifts to searches for electric vehicles on the heels of higher gas prices could be providing a bump towards the end of the quarter.

A new report from Cox Automotive, as shared by InsideEVs, said 213,000 new electric vehicles were sold in the United States in the first quarter, down 28% year-over-year. The figure was also down 9% from the fourth quarter of 2025.

In the first quarter, electric vehicles made up around 5.8% of all automotive sales, in line with the fourth quarter. The figure was down around two percentage points from the first quarter of last year and down from 12% market share in the third quarter of 2025 when the Federal EV tax credit came to an end.

While the overall sector was down in the first quarter, Tesla is named a winner in the report. The EV giant saw its market share cross back over the 50% mark for the United States in the first quarter for electric vehicle sales. The company was below 50% last year.

Tesla's overall U.S. automotive market share was 3.3% in the first quarter, in line with the year-over-year period.

With legacy automakers like Ford and General Motors stopping production of some EV models, Tesla has an opportunity to take back market share from new EV buyers.

While there is no longer a Federal EV tax credit offering a $7,500 discount on EVs, there could be a new marketing giant in the form of higher gas prices. Since the start of the war in Iran, searches for electric vehicles have increased in the United States, which could benefit Tesla in the market.

Tesla is set to report first-quarter deliveries in the first couple days of April. Based on recent reports from the United States and Europe, there are levels of optimism after a disappointing 2025.

Used EV Market Heats Up

Used electric vehicle sales were up 12% year-over-year in the first quarter, which could be due to selection.

According to Cox Research, the increased EV sales could be due to premium models hitting the used market more in abundance than in recent quarters.

But it's not just premium models, with 44% of all used electric vehicle sales in February coming in under the $25,000 price point. The report said consumers are starting to realize there are cost bargains among electric vehicles versus traditional automobiles.

Consumers can get a used electric vehicle with fewer miles at the same price as a used gas-powered vehicle with 20,000 more miles and one more year on the market.

Similar to Tesla’s first-quarter success, used EVs are also winning, driven by consumer interest and rising gas prices.

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