The electric vehicle (EV) market saw record-breaking momentum in August 2025, with strong gains across both new and used segments as consumers rushed to purchase ahead of the Inflation Reduction Act’s tax credit expiration. New EV sales hit an all-time high of 146,332 units, up 14.1% from July and 17.7% year-over-year, pushing market share to 9.9%. Tesla led in volume with 55,500 units but lost market share to rising players like Honda, which surged nearly 48% month-over-month, and Audi, which grew 65% among luxury brands. Used EV sales also climbed to a record 40,960 units, up 22% from July and 59% from last year, with Tesla remaining dominant but losing share to Ford and Volkswagen.

Prices reflected this demand pressure: the average transaction price (ATP) for new EVs rose to $57,245, reversing recent declines in the EV-to-ICE premium. Incentives, while slightly lower than July, remained influential, with Honda and Hyundai offering the most aggressive deals. On the used side, affordability improved further as listing prices averaged $34,704, narrowing the premium over ICE vehicles to a record-low $897, with popular models like the Chevrolet Bolt EV and Nissan Leaf under $15,000. Inventory tightened dramatically, with new EV supply falling to just 62 days (down 42.8% year-over-year) and used supply at 36 days, both well below earlier peaks. As the IRA credit winds down, Cox Automotive expects September to sustain this urgency-driven momentum, but the market’s longer-term direction will depend on how it balances demand, pricing, and constrained supply once incentives fade.