Tesla’s sales are declining, however competitors such as General Motors, BMW, Ford, and Hyundai are stepping up their game.
Should tariffs and significant policy shifts influence the market, 2025 might present challenges for electric vehicle sales. However, as of now, during the initial quarter of this year, the outlook remains quite positive.
In the initial three months, electric vehicle sales in the U.S. saw an increase of 11.4% compared to the same period last year, as stated in a report.
Cox Automotive
Approximately 300,000 new electric vehicles were sold during this time frame, benefiting from impressive performances by manufacturers such as General Motors, Ford, Honda, and BMW, coupled with an array of fresh electric car models that weren’t available at the beginning of 2024.
“Even with numerous challenges—and contrary to some reports—sales of electric vehicles keep increasing steadily in the U.S. market,” Cox stated. In 2024, Americans
purchased 1.3 million electric vehicles
, even though the rate of expansion was more sluggish than the sector had anticipated.
The 2025 BMW i4 helped propel BMW’s EV sales.
Throughout the year, the entire market has struggled, particularly due to Tesla’s performance issues. Despite representing the biggest portion of the electric vehicle sector, Tesla experienced a decline recently. According to Cox Automotive data, Elon Musk’s firm, leading the nation in electric vehicles, witnessed a drop of 8.6% YoY with only 128,100 units sold domestically. Although specific figures for regional sales were not detailed by the company, they have shown some challenges.
saw a 13% decrease in worldwide shipments for the first quarter.
. Tesla had its worst quarter of sales in nearly three years amid growing backlash to Musk’s role in government and a core vehicle lineup that hasn’t been significantly expanded or updated in years.
“If there isn’t a major change in their product approach, Tesla will keep declining within the U.S. marketplace,” Cox stated. The company has mentioned they’re
heading towards launching an affordable version
in the first half of this year, but it’s unclear what exactly that is. It also just launched a
refreshed Model Y crossover
, but it’s yet to be seen how much that will lift its sales.
Tesla just launched an updated Model Y, but it’s still not clear how much it will lift sales.
Other automakers were happy to pick up the slack and maybe even a few disgruntled Tesla owners. Most brands saw their EV sales grow year-over-year, per Cox.
Some of the best-performing brands in Q1 included Chevrolet, which saw a 114% surge in EV sales year-over-year on the back of the
Blazer EV
And the Equinox EV. This model garnered our approval.
EV of the Year Breakthrough Award
Last year, due to its low cost and 319-mile range.
BMW’s electric vehicle sales increased by 26%, primarily due to the success of the i4 sedan and iX SUV. Meanwhile, Toyota saw almost a threefold increase in sales of their electrified models.
bZ4X
SUV, albeit from a low starting point. Cadillac sales grew 37.4%. Ford maintained its spot as the No.2 EV brand with 22,550 electric models sold.
A slew of new models helped snag more EV buyers in Q1. Some EVs that were on sale in the most recent quarter that weren’t on sale during the same period last year include: the
Honda Prologue
, Acura ZDX,
Cadillac Escalade IQ
,
Cadillac Optiq
,
Chevrolet Equinox EV
, Jeep Wagoneer S, the electric Mercedes G-Wagen and the Dodge Charger Daytona muscle car.
Mercedes has recently introduced its inaugural electric G-Wagen, known as the G-580 With EQ Technology.
It wasn’t smiles all around, though. Mercedes-Benz experienced a 58% crash in EV sales, Cox said. Its EQ line of EVs hasn’t resonated with buyers, and a new, reimagined electric portfolio is on the way. Rivian, the California-based EV startup,
reported 36% fewer deliveries
, partly attributing this to the wildfires in Los Angeles, a crucial market.
The first quarter figures also indicate broader indications of slowing sales growth. This trend has persisted in the electric vehicle sector over the past few years, as initial enthusiasts have been replaced by typical consumers who are more challenging to convince about the benefits of adopting electric vehicles.
According to Cox’s estimates, U.S. electric vehicle sales decreased approximately 19% from the fourth quarter of 2024 to the most recent quarter. Additionally, new electric models that didn’t exist in the same period last year contributed around 43,000 sales in the recently concluded quarter. When focusing solely on vehicles that were available throughout both periods, EV sales experienced a slight decline.
Industry analysts expect that electric cars will
gradually replace combustion-engine vehicles globally
. The big question is how quickly that will happen, and how different parts of the world will make out. Zoom out, and it’s clear that demand for electric cars in the U.S. is growing, but outside factors could complicate the country’s transition to EVs in the near term.
President Trump’s
new tariffs on imported cars
, automotive components and additional products might increase the price of vehicles, which could dampen electric vehicle sales. Should the Congress be dominated by Republicans,
removes the $7,500 electric vehicle tax incentive
To finance the tax reductions, this would further weaken the situation. Cox indicated thatEVsalesforthe remainderof2025arelikelytobe“unstable.”
“If the new auto tariffs hold, they will pose a monumental challenge for many automakers, particularly due to the tariffs on steel and, importantly for EVs, aluminum,” the Cox report said. “Add to that the heavy speculation that the new administration will reverse Biden-era EV sales incentives, and the story for EV sales in Q2 and beyond is murky at best.”
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