US electric car sales sink as Europe’s soar amid Iran war

High gasoline prices from the war in Iran have not brought American car buyers back to new electric vehicles. In Europe, the same fuel shock has helped push EV sales to record levels.

Reuters reported Thursday that US EV sales fell 30.7% in the first nine months of 2026, citing research firm Motor Intelligence. EVs made up just 6% of US auto sales, down from 8.5% a year earlier, when buyers rushed to beat the September 2025 expiration of the $7,500 federal tax credit. In Europe, EVs took 23.2% of the market through September, up from 17.7% a year earlier, according to the European Automobile Manufacturers' Association.reuters

Policy split

Reuters said the gap comes partly from policy differences. European automakers keep launching electric models to meet strict tailpipe-emissions rules, and Chinese brands have entered the market with imported EVs. In the US, the Trump administration worked with Congress to end support for EVs and weakened fuel-efficiency rules, while tariffs and a ban on Chinese-made vehicle software have kept Chinese brands out. Transport & Environment, a Brussels-based advocacy group, counted more than 150 EV models on sale in Europe in the first half of 2026, up from about 100 in 2024. Many cost less than 25,000 euros. Earlier this week, Reuters reported that EU EV sales hit 1.64 million from January through August, up 45% from a year earlier.reuters+1

Hybrids and used EVs gain

US shoppers are buying hybrids instead. Hybrid sales rose 23% through the first three quarters and made up 15.6% of the market. "There's still demand out there [for EVs], but the energy and the masses are definitely running to hybrid technology," said Thad Szott, a Detroit-area dealer. Honda will end EV production after this year, and Nissan moved up the launch of a hybrid Rogue.reuters

Used EVs are selling well. CarGurus data show used EV sales up 19%. Forbes reported that Cox Automotive estimates used EV sales probably reached a record of about 127,000 units in the third quarter, with more cars coming off leases over the next two years. "The longer gasoline remains above $4 a gallon, the more consumers are inclined to consider and purchase a used EV," Cox chief economist Jeremy Robb told Forbes.forbes+1

Price is still a hurdle for new EVs. In a Globe and Mail column, Gus Carlson cited AAA figures putting the average new EV at more than $55,000, compared with about $48,000 for the average gas vehicle.theglobeandmail

Results vary by automaker

According to Motor Intelligence estimates, Tesla's ↗ 2.05% US sales fell 14% through September. Rivian's ↘ 2.58% sales rose 29%, helped by its new R2 SUV. Ford's ↘ 0.65% EV sales dropped 68%, and General Motors' ↗ 0.58% fell 43%. Hyundai has seen EV sales pick up since gas prices began climbing in late winter.reuters

"We're not giving up on EVs by any stretch of the imagination," said Randy Parker, CEO of Hyundai Motor North America.reuters