August turned out to be a landmark month for electric cars in the United States. According to Electrek, nearly 146,500 EVs were sold, pushing market share close to 10 percent. That might not sound huge compared to gas cars, but it’s a record, and the momentum is clear.
One reason sales are climbing is timing. Buyers are rushing to take advantage of federal tax credits before new rules kick in at the end of September. On top of that, automakers and dealers are dangling serious discounts. The average incentive for an EV topped $9,000 in August, equal to about 16 percent of the average transaction price. For comparison, incentives across the broader car market usually hover around 7 percent.
Prices crept up slightly month over month, with the average EV selling for just over $57,000, but that’s barely changed compared to a year ago. The big difference is competition. A few years ago, Tesla was basically the only name in town. Now, nearly every major brand has at least one electric model on sale, and more are arriving every quarter.
Tesla still leads U.S. EV sales by a comfortable margin, but cracks are starting to show. Its sales dipped nearly 7 percent compared to last August, and its share of the EV market has dropped to 38 percent, the lowest on record. Average transaction prices for Tesla cars came in at about $54,500, down more than 5 percent from a year earlier. Lower prices might be good for consumers, but they also reflect how much pressure Tesla is under from rivals.
Legacy automakers like Ford, Hyundai, and GM have been steadily grabbing slices of the market, while newer players are building buzz with fresh designs and features. With buyers having so many options now, brand loyalty isn’t what it used to be. Shoppers are cross-shopping Tesla against everything from budget EVs to luxury models, and many are finding reasons to look elsewhere.
All of this points to a simple truth: the U.S. EV market is no longer Tesla’s playground. It’s a crowded, fast-moving field where incentives, features, and timing matter more than ever. If August is any hint of what’s ahead, the rest of 2025 could bring even bigger surprises.