EV sales in the U.S. hit a record high in May since President Donald Trump rescinded the former President Joe Biden-era $7,500 Federal EV Credit.
EV Sales Hit Record High, Average Transaction Price Goes Down
On Wednesday, Cox Automotive shared that the average transaction price for a new vehicle in the U.S. during May was $49,220, slightly lower than April’s $49,456 figure.
However, the average EV transaction price during May was $54,532, representing a 4% YoY decline from May 2025. The report said that initial estimates suggested that EV sales in May could hit 85,000 units, the highest since the end of the Federal EV Credit at the end of September 2025.
Despite the lack of incentives, though, they made up for 14% of ATP, equal to roughly $7,600, the report said. “Electric-vehicle incentives remain elevated at nearly twice the industry average,” the report outlined.
How Tesla Fared
Tesla Inc. (NASDAQ:TSLA), which still dominates the U.S. EV sector, reported a transaction price drop of 3.4% YoY from May 2025 and 1% lower than April 2026.
The Model 3 sedan and the Model Y crossover SUV continued to account for almost the entirety of sales at 96%, the report said.
Customers on average paid over $49,082 for the Model 3 in May, while they paid over $51,537 for the Model Y, according to the report.
Tesla Sales Grow
The news comes as Tesla recorded a growth in its sales across multiple markets after months of declines, with sales growing 22% in China, as well as exports from its Shanghai factory growing 68% in May. Tesla sold 47,821 units via retail sales in May.
Meanwhile, sales in France surged 655% to 5,446 vehicles during May. Tesla also sold 858 vehicles in Sweden, demonstrating a 71% growth. Sales grew 136% to 1,750 in Denmark and 113% to 1,690 in Spain.
Benzinga Edge Rankings show that Tesla offers excellent Growth and Quality, but poor Momentum and Value. Tesla also fails to provide a favorable price trend in the Short, Medium and Long term.
Price Action: Tesla shares were down 2.18% at $388.04 during premarket trading on Thursday.
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