Q3 Sales Surprises, With Dealers Asking For More
EVs just notched a few wins. Tesla moved 486,532 vehicles in the third quarter, beating the roughly 464,000 analysts penciled in, even as it slipped 2.1% from last year's rush-fueled record. Rivian delivered 19,248, ahead of about 17,600 expected. In a note, JPMorgan's Rajat Gupta said the results likely benefited from the first full quarter of R2 shipments, calling it a "strong sequential step-up." The midsize SUV aims at a broader audience at around $50,000, well below the larger R1 lineup.
Momentum is showing up beyond the headliners too, with lower-volume EVs from Toyota and General Motors' Cadillac brand gaining some traction. That, plus Tesla and Rivian's beats, has some watchers seeing early signs of an EV demand reset.
Dealers are feeling it on the ground. Leaders at Hyundai and Ford say stores are asking for more battery-powered inventory as shoppers circle back.
After A Surge, A Slump, And Now A Settle
The market looks like it's finding a new baseline after last year's whiplash tied to the end of federal EV purchase subsidies. A Republican-backed measure signed by President Donald Trump scrapped the $7,500 federal EV tax credit a year ago as part of his effort to unwind what he calls an "EV mandate." The pending expiration pulled demand forward, pushing EV market share to a record near 11% in last year's third quarter, then left dealers with too many unsold cars once the rush faded.
So where are we now? Cox Automotive says EVs have stabilized near a 6% share of the US market this year. Lots have thinned out too, with EV inventories dropping from about a 180-day supply in early 2026 to 78 days in August, roughly in line with gasoline models.
The same speed bumps still slow broader adoption: patchy charging networks, higher upfront prices, fewer choices, and range anxiety. Even with elevated fuel costs making plugs more appealing, many automakers are still posting weaker EV sales versus a year ago. Shoppers are gravitating to gas-electric hybrids and snapping up used EVs that are often priced like comparable gas cars.
Quarterly delivery numbers tell you more about real EV demand than any forecast does. Market Briefs breaks down the data free every morning.
What Automakers And Dealers Are Seeing Now
Hyundai pivoted toward hybrids when EV sales cooled and is not planning to raise EV production even as dealers ask for more, according to Randy Parker, CEO of Hyundai's North America business. "Because of the war, because of gas prices, we've also seen a rise and a recovery in EV sales," he said. "I've got more and more dealers now asking for EV product." On Thursday he added, "Always better to have one or two vehicles too few than have one too many," noting the market remains volatile for the same reasons and could shift again quickly.
Ford has overhauled its money-losing EV unit, canceling multiple models and disclosing $19.5 billion in charges. Even there, dealers are asking for more electrics. On Friday, Ford's US sales chief Rob Kaffl noted that a dealer had contacted him that morning to get assistance for two buyers looking for a particular Mach-e, the Mustang-inspired electric SUV in Ford's lineup. "We're seeing a lot of returning Mach-e customers who want to get back into another EV," he said, while adding that "the demand on Mach-e continues to be strong."
What It Means For Your Portfolio
The floor under EV demand looks firmer than it did a few quarters ago. Tesla cleared a tough year-ago comparison and still beat estimates, while Rivian outpaced forecasts with help from the R2 landing at a lower price point. Earlier this year, a team at TD Cowen headed by Itay Michaeli forecast that the US market could recover in 2027 or 2028 as newer vehicle generations and additional self-driving capabilities hit the road. "We are still in the early stages of this looming EV comeback," Michaeli said in an interview Friday. "EV market coverage, by our estimation, will grow substantially in the next couple of years by existing players."
For your money, three things to watch: slimmer inventories that can support cleaner sell-through, more upbeat dealer chatter that often leads orders, and quarterly beats that can sway sentiment even as hybrids and used EVs keep winning budget shoppers.
Tesla, Rivian, and the rest of the EV trade reprice on numbers like these. Get the free Market Briefs daily newsletter and keep up.
