The US electric vehicle market has seen a 28% decline in new EV sales in Q1 2026, with new units selling down 28% year-over-year to just 212,600 units. However, used EV sales surged 12% to 93,500 units, with prices now within $1,300 of equivalent gas cars. This surge is due to the federal tax credit's expiration on September 30, 2025, which has led to a significant increase in EV sales. The One Big Beautiful Bill Act sunsetted the purchase credit, and the impact has been immediate and severe. New EV inventory has risen to 130 days’ supply, 46% higher than the 89 days supply for combustion vehicles. While the new EV market struggles, the used side is booming. Used EV prices now average $34,821.