Electric vehicle sales jumped 28% in May as new federal tax credits of up to ,500 per vehicle drove consumer interest in the growing market. Industry data shows nearly 180,000 EVs were sold last month, setting a new monthly record.

The credits, which went into effect earlier this year for previously ineligible vehicles, have made several popular models significantly more affordable. Several manufacturers also lowered prices to maximize the credit value for consumers.

Tesla remained the market leader but saw its share decline as competing models from traditional automakers gained traction. Hyundai and Kia combined posted the largest gains, with sales up 45%.

Industry analysts said the combination of tax credits, expanding charging infrastructure, and more model options is accelerating EV adoption faster than most forecasts predicted even a year ago.