EV Sales Rise 11% in U.S. During Q1; Tesla Reports 9% Decline

The US electric vehicle (EV) market demonstrated significant growth in the first quarter of 2025, with overall sales rising by approximately 11%. However, this positive trend was contrasted by a notable decline in Tesla’s sales, which fell by around 9% during the same period. Let’s take a closer look at the top trends in the EV industry and see which factors have fueled the growth of the overall market.

According to industry data, the total number of EVs sold in the U.S. during Q1 2025 reached nearly 300,000 units, up from the previous year’s figures. This growth underscores the increasing consumer adoption of electric vehicles in the U.S. market.

Chevrolet emerged as one of the sales leaders with a 114% year-over-year increase, largely driven by the launch of the new Blazer EV and, more notably, the Equinox EV, whose significant price drop earlier this year boosted its popularity in the U.S. market. BMW’s EV sales rose by 26%, Cadillac saw a 37.4% boost, and Toyota nearly tripled bZ4X deliveries. Volkswagen Group also made a notable leap, with the launch of the Macan EV pushing Porsche’s sales up by 249%, while Volvo reported an impressive nearly 173% growth.

Ford secured the second spot in nationwide EV sales with a total of 22,550 units sold. But who claimed the top position?

While the U.S. EV market grew overall, Tesla, historically its top player, suffered a 8.6% decline in Q1 sales. Even so, it retained the top position with around 128,100 units sold, according to estimates from Cox. This drop may signal a shift in Tesla’s dominance as more automakers accelerate their EV efforts, but the company still holds a commanding 43.5% share of the market.

However, Tesla’s sales decline wasn’t as dramatic as it could have been. Mercedes-Benz saw a steep 58% drop this quarter, Rivian slipped by 37%, and Kia recorded a 24% decrease compared to Q1 last year. In comparison, Tesla’s nearly 9% dip doesn’t look that severe, does it?

With Q1 behind us, let’s explore what lies ahead for the EV market and what the next quarter might bring.

The U.S. EV market is continuing its expansion, but the landscape is evolving. The growth of competitors and the increasing availability of diverse EV options are providing consumers with more choices, which is impacting market share distribution. Tesla’s sales decline, combined with the growth of competitors, indicates a potential shift in the market’s balance.

Industry experts predict that the remainder of 2025 could be a “volatile” period for EV sales. Rising tariffs on steel and aluminum may pose a serious challenge for many automakers. While we hope most brands navigate these headwinds successfully, these potential obstacles could heavily impact future sales performance.

At EV.com, we’ll continue bringing you top insights from the EV world. Looking for a deal? Our Search page helps you find the best offers in your state.