The U.S. electric-vehicle market appears to be stabilizing following a major dip in the fourth quarter, according to Cox Automotive.

EV sales volume was down about 21% year-over-year in the second quarter, but that was up from the previous quarter, when deliveries were down 27% year-over-year. Both quarters are a major improvement from the sharp fall at the end of 2025 following the end of the federal EV tax credit.

Over 247,000 EVs were sold in the second quarter, according to Kelley Blue Book estimates, accounting for nearly 6% of total new-vehicle volume.

Tesla sales accounted for about half of that, but Toyota and Subaru both doubled their EV volumes year-over-year.

While EV interest remains low but steady here, Cox forecasts hybrid sales increased by about 9%. Hybrid interest began a climb earlier this year when gas prices spiked due to war in the Middle East, boosted by automakers expanding their hybrid options across product lines. Some nameplates that were once gasoline power trains are now exclusively hybrids, Cox said.

The automotive services and technology provider said it believes that the future of the U.S. EV industry remains positive, thanks to product launches, state-level incentive programs and steady consumer interest.

“The next phase of EV growth will likely be driven not only by advances in the technology itself, but by how effectively automakers translate those advances into products that meet consumer expectations for affordability, utility, performance and ownership experience,” said Cox Automotive Director of Industry Insights Stephanie Valdez.