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EV sales are normalizing in the US – and TAKING OFF everywhere else
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- DeepHorus
Global electric vehicle sales reached a record 2 million deliveries in June, driven by a surging European market and expansion into new regions by affordable Chinese brands. In the United States, EV sales are beginning to normalize following the expiration of the Federal Tax Credit last September, with a 20% month-over-month increase signaling a recovery from a post-incentive slump. The contrasting trends highlight a shifting global landscape where markets outside the U.S. are accelerating adoption at an unprecedented pace.
The Federal Tax Credit, which ended in September 2025, triggered a pull-ahead effect that pushed sales to a peak late last year, followed by a sharp decline. However, industry data now shows U.S. EV registrations trending upward as the impact of that temporary surge fades. Globally, Europe leads the charge, while Southeast Asia, South America, and Africa see growing demand from cost-effective Chinese automakers.
June’s global record of 2 million units surpasses May’s 1.8 million, with Europe accounting for a significant portion of the growth. U.S. sales, though still below their 2025 peak, have rebounded more than 20% from May. The top 10 best-selling EVs in the U.S. through the first half of 2026 include models from Tesla, Rivian, and Lucid, though Tesla’s dominance is slipping.
The normalization in the U.S. market has implications for automakers and policymakers. Battery supply chains are stabilizing, and more affordable models are entering the market. In California, a new $3,500 EV incentive is drawing attention for favoring Rivian and Lucid over Tesla, potentially reshaping competitive dynamics. The incentive is expected to boost sales of those brands while angering Tesla enthusiasts.
Reactions from industry observers note that the U.S. is falling further behind global leaders like Europe and China. Meanwhile, California’s policy reflects a strategic push to support local manufacturers and diversify the EV ecosystem. The grid has also benefited from EV adoption, as vehicle-to-grid technology helped manage heatwave demand last week.
Looking ahead, global EV sales are poised for continued expansion as charging infrastructure improves and prices drop. The U.S. market may regain momentum through new incentives and model launches, but it faces stiff competition from more dynamic international markets. The divergence in adoption rates underscores the need for consistent policy support to maintain competitiveness.
