In May, the electric vehicle (EV) market showed a mix of progress and pressure, with used EV sales and prices rising modestly due to increased affordability and consumer confidence, while new EV sales declined year over year despite month-over-month growth.

New EV prices fell to an average of $57,734, narrowing the gap with internal combustion engine (ICE) vehicles, aided by record-high incentives averaging $8,226.

Several EV models, including the Chevrolet Equinox EV, remained under $40,000, highlighting efforts to make EVs more accessible.

The used EV market saw a 1.1% monthly increase in sales and a 2.6% rise in average prices, led by Tesla, which still dominates both new and used segments.

Inventory levels for new EVs rose to 111 days, while used EV supply tightened to 40 days, indicating shifting consumer demand that may reshape pricing and inventory strategies moving forward.