New EV sales rose 4.2% month over month in May, reaching 103,435 units and maintaining a 6.9% market share. However, sales were down 10.7% year over year, reflecting ongoing industry challenges and the dynamic nature of an emerging market. May estimates suggest Tesla remained the market leader with 46,150 units sold, a 0.6% month-over-month increase, followed by General Motors, Hyundai Motor Group and Ford. Honda, which launched its first EV in the spring of last year, rounded out the top five.

The used EV market experienced modest growth in May, with sales increasing 1.1% month over month to 36,609 units, maintaining a 2.2% share of the overall used-vehicle market. Year over year, sales surged 32.1%, reflecting sustained momentum. Tesla led with a 49.6% share. According to our estimates, the best-selling used EVs last month were the Tesla Model 3, Model Y, Model S, Model X and Chevrolet Bolt EV. The used EV market continues to be dominated by Tesla-brand products, but we expect that to shift in the coming years.

In May, new EV days’ supply rose 8% month over month to 111 days, though it remains 11.6% lower than the same period last year. New EV days’ supply continues to exceed that of ICE+ models by more than a full month. Supply levels varied significantly by brand, reflecting the dynamic nature of the EV market, driven by production shifts, evolving consumer demand, and strategic inventory management. Most automotive brands saw an increase in EV days’ supply, signaling improved inventory availability.

In May, the days’ supply of used electric vehicles declined by 3.4% month over month to 40, an 11% year-over-year decline, reaching its lowest level since June 2022. The gap between used EVs and ICE+ vehicles has narrowed to less than five days. As with the new EV market, days’ supply for used EVs varies significantly by make. Tesla recorded the lowest level at 28 days. This tightening supply landscape suggests growing consumer interest in used EVs, signaling a potential shift in demand dynamics that could reshape pricing and remarketing strategies in the months ahead.

In May, the average transaction price (ATP) for new EVs fell to $57,734, marking a 2.3% decline from April and a 1.1% year-over-year decrease. The price gap between EVs and ICE+ vehicles narrowed to $9,644, down from $11,108 the previous month. At the same time, EV incentives increased by 19.4% to an average of $8,226, now accounting for 14.2% of ATP, the highest share in the post-2018, modern EV era. These incentives remain more than twice as high as those for ICE+ vehicles, underscoring the continued push to make EVs more accessible.

In May, the used electric vehicle (EV) market saw a modest price increase, with the average price rising to $36,053, up 0.9% from the previous month and 2.6% year over year. The price gap between used EVs and ICE+ vehicles remained narrow, staying below $2,000. The Tesla Model 3 was the top-selling used EV in May, averaging $23,160, a 1.6% decrease from April. As the used EV market matures, price trends are increasingly shaped not only by brand dynamics but also by shifting consumer priorities around value, range, and long-term ownership costs.