Electric vehicle (EV) sales in the US market have increased by over 10% year-over-year in the first quarter of 2025, according to Kelley Blue Book. Nearly 300,000 new EVs were sold, with General Motors (GM) driving growth and Tesla experiencing a decline.
The increase in EV sales is attributed to new models from popular brands like Acura, Audi, Chevrolet, Honda, and Porsche, which have contributed to higher sales volumes. GM’s long-awaited EVs are finally hitting the market, with over 30,000 EVs sold in Q1, nearly doubling its previous year’s volume.
Other brands, such as Stellantis and Hyundai Group, also made their mark with new product launches in Q1. Honda and Acura added over 14,000 EVs to the market, thanks to a partnership with GM.
However, Tesla saw sales fall by nearly 9% compared to last year’s levels. Despite its recent resurgence, the company is expected to continue to shrink in the US market if it doesn’t shift its product strategy. The new Model Y launch may help turn this trend around, but for now, the market remains uncertain.
Analysts predict a volatile Q2 and beyond, with factors like auto tariffs on steel and aluminum posing significant challenges for many automakers. The ongoing trade war with China and potential reversal of EV sales incentives also add to the uncertainty.
The market will likely continue to navigate these challenges as new products and incentives are introduced. As one analyst noted, “The year started strong, but the road ahead will be anything but smooth.”
Source: https://www.coxautoinc.com/market-insights/q1-2025-ev-sales