Monday, April 14, 2025
By Kamal Swami
EV Sales Increases in U.S. Despite Tesla’s Decline
According to recent reports Electric vehicle (EV) sales in the United States have a significant hike of 11 percent during the first quarter of 2025. The growth significantly outpaces the overall new car market, which remained flat compared to the same period in 2024. In a report submitted by the Cox Automotive EVs accounted for roughly 8 percent of all new vehicle sales domestically — a slight increase over last year. In a statement given by the group, “Despite many obstacles — and what you may read elsewhere — electric vehicle sales continue to grow at a healthy pace in the US market,”.
The surprising element of these sales figures is that despite an increase in the sales of EVs, industry leader Tesla witnessed a huge decline in its sales. Although the company dominate the EV market in the United States with 44% of the market share, compared to the share of 51% held by the company in 2024. The point here to note is that the global sales of Tesla also recorded a decline of 13% as compared to last year. Industry analysts believe that the main reason for the decline in the sales of Tesla is the old product lineup, disappointing Cybertruck sales, increasing competition in the segment, and production shifts for the updated Model Y. Apart from this the political affiliations of CEO Elon Musk have also sparked protests at Tesla dealerships and may be alienating potential buyers.
The Cybertruck, Tesla’s much-hyped pickup, sold 6,400 units in the first quarter — twice the number from a year ago. However, the vehicle had just begun production at that time, skewing comparisons. Notably, Tesla has reportedly stopped accepting Cybertrucks as trade-ins for new vehicles — an unprecedented move in the auto industry that has raised questions about resale value and long-term confidence. On the other side, General Motors (GM) has emerged as a key player in the EV market. The company delivered 10,300 units of the new Chevy Equinox EV in the first quarter alone. With the launch of the Chevy Blazer EV and the increasing craze for Cadillac and GMC electric models, GM’s total EV market share has grown to 11 per cent — nearly doubling from 6 per cent a year earlier.
More than 30,000 electric vehicles from GM brands were sold last quarter, surpassing both Ford and Hyundai. Meanwhile, the Ford Mustang Mach-E held the title of the best-selling non-Tesla EV in the U.S. Honda and Acura also entered the EV market with a combined 14,000 units sold — up from zero in early 2024. Despite this momentum, the remainder of 2025 can disturb the EV sector. The impact of new auto tariffs — particularly those affecting steel and aluminium — is expected to challenge automakers. While two-thirds of EVs sold in the U.S. last year were assembled domestically, the industry remains reliant on global supply chains. China’s dominance in EV battery material supply means the ongoing U.S.-China trade tensions could have far-reaching effects on pricing and availability.
As the market evolves, experts say that pronouncements of the "death" of the EV revolution in the U.S. are premature at best.
