In the first quarter of 2025, nearly 300,000 new electric vehicles (EVs) were sold in the United States, reflecting an 11.4% increase compared to the same period last year, according to a report from Kelley Blue Book. This growth indicates that despite various challenges, the electric vehicle market continues to expand, with EVs representing approximately 7.5% of total new vehicle sales, up from 7% a year prior.
The growth in the EV sector is not uniform across all manufacturers. New models from brands such as Acura, Audi, Chevrolet, Honda, and Porsche have contributed to increased sales. Conversely, some established models have seen a decline as manufacturers adjust their strategies. For example, Chevrolet has transitioned from the Chevy Bolt to the Chevy Equinox EV.
General Motors (GM) experienced significant sales in the first quarter, selling over 30,000 EVs, which is nearly double the sales from the previous year. This increase allowed GM to surpass both Ford and Hyundai in sales volume. Additionally, Honda and Acura introduced more than 14,000 EVs to the U.S. market, a notable increase from zero a year earlier, largely due to a partnership with GM.
Stellantis also entered the EV market with new offerings from Dodge, Jeep, and Fiat during the same period. However, Tesla remains the leader in the EV market, despite experiencing a nearly 9% decline in sales compared to last year, with 128,000 units sold in Q1 2025. Tesla’s market share has decreased to approximately 3%, down from a peak of 5% in the spring of 2023.
Analysts suggest that the remainder of 2025 may present challenges for EV sales, influenced by new tariffs on steel and aluminum, which could impact production costs. The ongoing trade tensions with China, a key supplier of EV battery materials, further complicate the market landscape. There are also concerns that potential changes to EV sales incentives by the new administration could affect future sales. As noted by Cox Automotive Analyst Stephanie Valdez Streaty, while the year began positively, the outlook for the future remains uncertain.
