New electric vehicle (EV) sales slightly declined but reached a record high for February, with luxury brands performing well. Used EV sales also decreased monthly but grew by a lot year over year. 

Days’ supply increased for both new and used EVs but remained significantly lower than the prior year. Pricing trends showed a decrease in new EV transaction prices, aided by incentives, making them more affordable, while used EV prices increased slightly.

New EV Sales: In February, the volume of new EV sales declined by 5.9% month over month to 95,692 units, although it was the highest volume ever reported for the month of February. The volume increased by 10.5% yearly, but market share declined to 7.7%. It was a good month for luxury brands, with both BMW and Rivian selling more than 4,000 units, representing increases of 20.9% and 34.0%, respectively, compared to the previous month. Tesla’s overall sales were down by 10.0%, driven by declines in the Cybertruck (down 32.5%), Model 3 (down 17.5%), and Model Y (down 3.1%). The top five selling models, ranked by sales volume, were the Tesla Model Y, Tesla Model 3, Ford Mustang Mach-E, Honda Prologue, and Rivian R1S.

Used EV Sales: In February, used electric vehicle sales declined by 4.7%, reaching 24,875 units. Despite this decline, there was a year-over-year growth of 34.2%. Tesla maintained its dominant position in the used EV market with a substantial 39.9% sales share despite a 9.2% decline in month-over-month sales volume.

New EV Days’ Supply: In February, the supply of new EV days increased by 16.8% month over month, reaching 104 days. This exceeded the ICE+ days’ supply after being below it last month. Year over year, the supply of new EV days is down 31.7%, indicating a significant improvement in inventory turnover compared to the previous year.

Used EV Days’ Supply: In February, the days’ supply of used electric vehicles reached 49 days, an increase of 5.9% month over month but a 21.5% year-over-year decrease. Last month, used EVs had a five-day lower supply than ICE+ vehicles. However, with ICE+ days’ supply declining by 6.5% month over month, the gap has now narrowed to just one day. The low days’ supply for EVs indicates a healthy and dynamic market driven by the increasing availability of more affordable options.

New EV Average Transaction Price: In February, the average transaction price (ATP) for new electric vehicles was $55,273, showing a 1.2% decline from the previous month and a 3.7% increase from the previous year. On average, EVs had a price premium of 16.2%. Incentive spending reached its highest level at 14.9% of ATP, which was 4.4% higher than the prior month.

Used EV Average Listing Price: The average listing price for used EVs was $38,057, reflecting a 1.8% increase month-over-month and a 1.6% increase year over year. Twelve brands had listing prices below those of their internal combustion engine (ICE+) models. Affordable options remain available, with 39% of units sold priced under $25,000.