The EV Hotspots of the US and Canada

The American electric vehicle market is still nursing a hangover from the end of the federal tax credit, which expired last September after a record rush of buyers trying to beat the deadline.Sales have trailed last year's pace for three straight quarters, but the second quarter was the best since the credit disappeared, a sign the worst of the slump may be behind the industry.

Canada has told a different story, with EV share now ahead of where it was a year ago after Ottawa rolled out a fresh round of rebates in February.

Where are EV sales highest in North America? 

California, Washington and Nevada lead the US in terms of EV share of new vehicles, with California alone holding roughly a third of the country's EVs, though even it hit a four-year low in EV share early this year after the federal tax credit vanished. By total numbers, Florida and Texas are just behind California.

In Canada, British Columbia and Quebec pull well ahead, which secondary sources credit to provincial rebates and sales mandates, while Ontario and truck-heavy Alberta and Saskatchewan trail.

All in all, electric vehicles represented 9.6% of new US light-duty vehicle sales in 2025, while Canada's annual ZEV sales share was 8.7%.

And why? It’s pretty simple: buying follows policy. EVs still cost more up front than comparable gas or hybrid models, so for many buyers a government incentive decides whether the purchase makes sense.

What everyone’s driving

The Tesla Model Y was America's best-selling EV in Q2 at 84,863 units, ahead of the Model 3 at 34,944, and Tesla holds roughly half the US market on those two products. That being said, the American automaker’s numbers have been slipping, opening the door for emerging alternatives like the Chevy Equinox.

North of the border, the Model Y is billed as the country's top-selling electric SUV, though GM Canada says it sold more EVs than any other automaker in the first quarter, led by the Cadillac Optiq in the luxury segment.

The global picture: Worldwide, 2025 was another record year, with roughly one in four new cars sold carrying a plug and more than half of new cars in China going electric.

The start of 2026 was softer, as policy changes in both China and the US weighed on sales. Europe went the other way, growing by close to a third as tighter EU emissions rules pushed automakers to cut prices and launch cheaper models.

Growth is also spreading to new markets in Asia and Latin America, often on the back of Chinese imports, and Chinese automakers now supply roughly six in ten EVs sold globally.