Tesla outsells all other brands combined as America's EV market resets

• Tesla accounted for more than half of US electric-vehicle sales in the third quarter.
• Its quarterly sales increase exceeded the entire market's gain, Cox estimates show.
• High gas prices are helping EVs compete, though sales remain below last year's levels.

Tesla is taking a bigger slice of America's electric-vehicle market as high gas prices give drivers another reason to consider ditching the pump.

The company sold an estimated 144,094 vehicles in the US in the third quarter, up from 124,800 in the previous three months, according to Cox Automotive's latest sales report.

That increase was bigger than the gain for the rest of the US EV market. Put another way: Tesla drove the recovery. Everyone else, taken together, went backward.

The figures offer a new twist on the EV comeback I wrote about in July. Back then, sales had finally improved after the slump that followed the end of federal incentives in the US. Several manufacturers were benefiting, but only those with the fortitude to stick with EVs after federal government support waned.

While recovery continued in the third quarter, it became more dependent on Tesla.

Americans bought 262,649 new EVs during the period, about 6% more than in the second quarter. Sales outside Tesla fell roughly 3%, based on a comparison of Cox's latest counts with its second-quarter report.

Tesla's own sales rose about 15% from the second quarter. It supplied 54% of the country's new EVs in the third quarter, extending its lead from the previous period.

High gas prices help make the case for going electric, according to Cox.

"With gas prices well above $4 a gallon, electric vehicles look better than ever," Stephanie Valdez Streaty, Cox's director of Industry Insights, said in the company's analysis of the quarter.

Expensive gasoline and diesel make running a conventional vehicle more painful. For drivers who can charge cheaply, particularly at home, an EV offers a valuable alternative to repeated trips to the pump.

There's an important caveat to the comeback story: Sales are improving from a depressed level.

Total US EV sales were down almost 40% from a year earlier. Last year's third quarter was unusually strong because buyers rushed to claim federal incentives before they disappeared.

Tesla's sales were down about 20% against that comparison. The company remains heavily dependent on two vehicles. The Model Y and Model 3 accounted for roughly 97% of its US sales in the latest quarter.

The Cybertruck sold over 4,300 units, and Tesla has stopped making the Model S and X. (There's a Roadster, though not until 2028).

So Tesla's growing dominance isn't a story of every model flying out of showrooms, or of selling more cars than a year ago.

For now, it is winning a larger share of a smaller market. As Americans return to EV shopping, Tesla is capturing more of their business.

Sign up for the AI Insider newsletter here. Reach out to me via email at [email protected]