The used EV market moved upward in May, driven by affordability and consumer confidence, according to Cox Automotive numbers released June 19.

Inventory levels, pricing trends, and incentive strategies reflected a transition market.

Overall, the electric vehicle market displayed a complex mix of growth and challenges in May, with year-over-year declines pointing to broad industry pressures.

New and Used EV Prices

The average transaction price (ATP) for new EVs in May fell to $57,734, marking a 2.3% decline from April and a 1.1% year-over-year decrease. The price gap between EVs and ICE+ vehicles narrowed to $9,644, down from $11,108 the previous month. Meanwhile, EV incentives increased by 19.4% to an average of $8,226, now accounting for 14.2% of ATP, the highest share in the post-2018 modern EV era. These incentives remain at least twice as high as those for ICE+ vehicles, underscoring the continued push to make EVs more accessible.

Among the most affordable options, the Nissan Leaf maintained its position with an ATP of $32,581. Additionally, several models – including the Acura ZDX, Ford Mustang Mach-E, Hyundai Ioniq 6, Kia EV6, Nissan Ariya, Toyota BZ4X, and VW ID.4 – had effective prices under $40,000, calculated by subtracting model-specific average incentives from their ATPs. The Chevrolet Equinox EV stood out by remaining under $40,000 even without incentives, reinforcing its strong value proposition in today’s competitive EV market. As EV adoption accelerates, ensuring a growing supply of affordable models is essential. For many consumers, price remains one of the most main barriers to switching to electric.

The used EV market saw a modest price increase, with the average price rising to $36,053, up 0.9% from the previous month and 2.6% year over year. The price gap between used EVs and ICE+ vehicles remained narrow, staying below $2,000. The Tesla Model 3 was the top-selling used EV in May, averaging $23,160, a 1.6% decrease from April. As the used EV market matures, price trends are often shaped by brand dynamics and shifting consumer priorities around value, range, and long-term ownership costs.

New and Used EV Sales

• New EV sales rose 4.2% month over month in May, reaching 103,435 vehicles and maintaining a 6.9% market share. However, sales were down 10.7% year over year, underscoring industry challenges and the dynamic nature of an emerging market. May estimates suggest Tesla remained the market leader with 46,150 vehicles sold, a 0.6% month-over-month increase, followed by General Motors, Hyundai Motor Group, and Ford. Honda, which launched its first EV in the spring of last year, rounded out the top five.

• The used EV market saw modest growth in May, with sales increasing 1.1% month over month to 36,609 vehicles, maintaining a 2.2% share of the overall used-vehicle market. Year over year, sales surged 32.1%, reflecting sustained momentum. Tesla led with a 49.6% share. The best-selling used EVs last month were the Tesla Model 3, Model Y, Model S, Model X, and Chevrolet Bolt EV, according to Cox estimates. The used EV market continues to be dominated by Tesla-brand products, which still dominate the EV market, but Cox analysts expect that to shift in the coming years.

New And Used EV Days' Supply

• In May, new EV days’ supply rose 8% month over month to 111 days, although it remains 11.6% lower than last year. New EV days’ supply exceeds that of ICE+ models by more than a whole month. Supply levels varied much by brand, reflecting the dynamic nature of the EV market, driven by production shifts, evolving consumer demand, and strategic inventory management. Most automotive brands saw increased EV days’ supply, signaling improved inventory availability.

• The days’ supply of used electric vehicles declined by 3.4% month over month to 40, an 11% year-over-year decline, reaching its lowest level since June 2022. The gap between used EVs and ICE+ vehicles has narrowed to less than five days. As with the new EV market, days’ supply for used EVs varies a lot by make. Tesla recorded the lowest level at 28 days. This tightening supply landscape suggests growing consumer interest in used EVs, signaling a potential shift in demand dynamics that could reshape pricing and remarketing strategies in the months ahead.