US EV Sales Fall as Policy Changes Reshape Auto Market

US electric vehicle sales declined sharply as buyers shifted away from new EVs amid changing government policies and reduced incentives, according to industry data reported on October 8, 2026. Research from Motor Intelligence showed EVs represented 6% of new vehicle sales through September.

Reuters reported that US EV sales were down 30.7% this year through September, compared with 8.5% of the market during the same period a year earlier. The earlier increase was linked to buyers seeking a federal tax credit before it expired.

According to Reuters, EV sales account for 23.2% of new vehicle sales in Europe, while the US market has slowed after federal EV support ended. Automakers have also reduced planned EV products and buyers have increasingly moved toward hybrids and used EVs.

Analyst Rick Wainschel said larger vehicle segments are facing slower movement as inventories rise. He described the trend while discussing full-size pickups, heavy-duty trucks, and luxury SUVs.

"More expensive and less fuel-efficient segments such as full-size pickups, heavy-duty trucks, and luxury full-size and midsize SUVs are seeing their days' supplies move up faster than smaller, more fuel-efficient ones," said Rick Wainschel, analyst.

Wainschel also addressed inventory growth among larger vehicles, with Automotive News reporting that some less fuel-efficient categories are not selling as quickly as new inventory arrives.

"Additionally, those larger and less fuel-efficient segments are seeing notable increases in inventory because they are not [selling] as fast as they are being added," said Rick Wainschel, analyst.

Polestar is also nearing the end of its remaining 2026 vehicle inventory in the US, according to Reuters. CEO Michael Lohscheller said the company sold 14,371 vehicles globally in the third quarter, up from 14,222 a year earlier.

"As we are now selling the last model year 26 cars," said Michael Lohscheller, CEO of Polestar.

Reuters reported that Polestar sold about 2,160 vehicles in the US during the quarter, compared with 966 in the same period last year, as the company faces restrictions affecting sales of future model year vehicles.