EV Sales up over 11 Percent!
At the beginning of 2025, a lot of pundits were predicting that with a change in government, the tide would turn against electric cars in the U.S. Yet, despite the looming threat of the disappearance of the federal EV tax credit, and a complex automotive market, EV sales in America continued to grow, and hit record levels in the first quarter of this year.
What Percentage of New Cars Sold are Electric?
Data from Cox Automotive shows that in the first three months of 2025, the electric car market in the U.S. continued to grow, with almost 300,000 new EVs sold, an 11.4 percent increase over the same period in 2024. Despite numerous challenges in the market, EVs now account for 7.5 percent of total vehicle sales in America, up from 7 percent in the first quarter of 2024.
The growth in EV sales in the first quarter came as part of a topsy-turvy auto market, one that turned sharply upward at the end of March as the threat of import tariffs on many popular vehicles in the U.S. loomed. Sales of vehicles on dealer lots spiked in March and that includes EVs.
What Were the Best-Selling EVs?
While it’s no surprise that Tesla is still the dominant player in electric cars, the company now represents less than half of all new EVs sold in the U.S. Indeed, Tesla was one of the few brands whose first-quarter sales declined in 2025, down 9 percent year-over-year, while overall EV sales grew by double digits. Still, the Model Y remains one of the most popular vehicles in the world and the recently updated Model 3 saw a huge sales increase as the Model 3 “Highland” update was delivered in large numbers.
General Motors, whose Cadillac, Chevrolet, GMC, and Hummer brands all sell electric vehicles, had a great first quarter. Chevrolet alone sold almost 20,000 new EVs, doubling its sales in the first quarter of 2024. Half of those were for the new Equinox, which is quickly becoming our favorite best-value electric vehicle. The larger Blazer EV had a nine-fold sales increase, reaching over 6,000 units, and the Silverado EV pickup got 2025 off to a strong start. The huge Hummer EV pickup and SUV doubled their sales in the first quarter, and GMC also moved over 1,200 new Sierra EV pickups.
Interestingly, Porsche had the highest EV sales growth of any brand in America. The new all-electric Macan, launched late last year, started hitting dealer lots in earnest, and Porsche EV sales were up almost 250 percent. Toyota almost doubled its EV sales, Volkswagen had a great first quarter thanks to the updated ID.4 and the new ID. Buzz, and Volvo’s new EX30 and EX90 have also been sales successes.
Some Sales Losers in 2025
It was not all good news in the EV market, though. In addition to Tesla’s 9 percent drop, several other brands saw sales shrink. Mercedes-Benz EV sales were down 58 percent, sales of the Rivian R1S and R1T dropped by 37 percent as it transitioned to updated models, and Kia slipped by 24 percent compared to the first quarter of 2024.
Looking ahead, 2025 is likely to be a volatile year for EV sales in the U.S. While demand continues to increase, many popular models such as the Mustang Mach-E and Honda Prologue are made in Mexico which could mean that new import tariffs push up their selling price. Meanwhile, many brands are scrambling to relocate production to the U.S. to avoid tariffs, which could result in delays and product shortages.
Even vehicles made in the U.S. rely on steel or aluminum from foreign countries, which could make them more expensive. Not to mention the fact that China supplies most of the world’s EV battery materials.
Still, EV sales continue to gain ground as more drivers discover the benefits of going electric which includes lower running costs, less maintenance, and a smooth, tech-rich driving experience.
EV Sales Highlights: Q1 2025 Year-Over-Year
Top Gainers
- Porsche: +250%
- Driven by demand for the Taycan and new Macan EV.
- Toyota (bZ4X): +200%
- Nearly tripled sales compared to Q1 2024.
- Chevrolet: +100%
- Sold 19,186 EVs; Equinox and Blazer EV significantly boosted figures.
- General Motors (GM): +90%
- Over 30,000 EVs sold; doubled previous year's performance.
- Volkswagen (VW): +80%
- Global EV sales reached 216,800, with strong ID.4 and ID. Buzz demand.
- Volvo: +60%
- Continued success from new models EX30 and EX90, with substantial year-over-year growth.
Declines
- Tesla: -9%
- Delivered 128,100 vehicles in the U.S.; market share fell below 50% despite strong Model 3 and Y.
- Mercedes-Benz: -58%
- Sold 45,500 EVs globally; experienced a notable decline amid competitive pressures.
