US EV Sales Jump 20% in July

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Kelley Blue Book came out with its monthly US auto sales report this week. As part of that, it report jumping electric vehicle sales in the country. We have to wait until next week for most of the details, but KBB put out a few key stats.

US EV sales were up 20% year over year in July. They surpassed 130,000 sales, making it the second-highest EV sales month in history in the United States, and the highest mid-year sales month ever.

The high sales are not a huge surprise. For one, EV sales have been rising quite consistently for years. Additionally, they are probably being supercharged at the moment due to coming policy changes. The US EV tax credit is going to end on October 1, so there should be a rush of EV buyers through September, and it seems that rush already started in July.

Thirdly, EV prices dropped considerably in July. “EV incentives soared in July, as automakers and dealers worked to move inventory prior to the decline in government support. The average incentive package for an EV in July was 17.5% of ATP, a record in the modern era of EV sales and higher year over year by more than 40%.” Wow. That will help move metal and plastic. It’s not clear how much of that was Tesla (which accounts for about 50% of the US EV market) lowering prices versus other auto dealers lowering prices. Actually, it’s not clear if KBB finds a way to work Tesla discounts into this analysis at all. Though, one can see that Tesla’s average transaction price (ATP) was down by more than $5,000 in July 2025 versus July 2024.

Here’s a final statement from a KBB rep on July’s EV jump: “The urgency created by the administration’s decision to sunset government-backed, IRA-era EV incentives was expected to create serious demand for EVs in the short term. If last month is any measure: Mission Accomplished. July sales were near an all-time monthly record. At this pace, Q3 will be the best ever and then some, as buyers jump in before the big incentives dry up,” Stephanie Valdez Streaty, Senior Analyst at Cox Automotive, said. Indeed.