US Electric Car Sales Rebound in 2Q... Overcoming the Subsidy Gap Amid High Oil Prices

The US electric vehicle market rebounded in the second quarter after federal subsidies ended. According to Cox Automotive, electric vehicle sales in the US reached 247,226 units in Q2, up from 216,000 in Q1. This marks the first quarterly increase since subsidies were removed last year. Rising gasoline prices have renewed the economic appeal of electric vehicles, making them a more cost-effective option compared to internal combustion passenger cars, pickups, and SUVs. Some US consumers switched from fuel-guzzling BMWs to Tesla Model 3s during early-year gasoline price spikes, as the vehicle's rooftop solar panels and Powerwall battery minimized fuel costs even at $5 gasoline. Performance varied among automakers: Ford saw 41% fewer sales, Chevrolet dropped 48%, Mercedes fell 59%, and Nissan declined 88%. Conversely, companies maintaining electric vehicle strategies saw growth, with Toyota selling 11,826 units (up 225%), Subaru doubling sales to 7,023 units, Hyundai increasing 46%, and Rivian rising 7.6%. Tesla maintained its US market leadership with 124,800 units sold (50.5% market share), with the Model Y securing the top-selling EV spot in the US. Year-over-year declines were limited to 1.5% for Tesla, while global deliveries reached 481,264 units, up 25% year-over-year.