Nearly 300,000 electric vehicles were newly registered in the United States during the first quarter of 2025, marking a 10.6% increase compared to the same period last year, according to data released by Kelley Blue Book. Battery-electric vehicles accounted for 7.5% of all new car registrations, up from 7.0% in Q1 2024, underscoring a steady, though fragmented, expansion of the EV market.
Tesla retained its lead with a 43.5% share of EV sales, delivering approximately 128,000 vehicles. However, this represents an 8.6% year-on-year decline, with Model Y deliveries falling 34% to 64,051 units, partially offset by a 70% increase in Model 3 sales to 52,520 units. General Motors rose to second place with 31,886 electric vehicles sold across its Chevrolet, Cadillac, and GMC brands — nearly doubling its volume year-on-year. “GM drives EV growth while Tesla declines,” the Kelley Blue Book report noted.
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Other top-performing manufacturers included the Hyundai Group with 22,995 units and Ford with 22,550. Volkswagen Group saw a 183% surge in EV sales, boosted by the ID.4, ID. Buzz, and new entries from Porsche and Audi. Toyota posted strong growth in its BZ4X line, while Volvo more than doubled its EV sales thanks to the new EX30 and EX90 models.
Despite gains, several legacy and startup automakers faced declines. Mercedes-Benz reported a 58% drop in BEV sales, with sharp declines in its premium EQE and EQS models. Rivian’s deliveries also fell 37% year-on-year, with all three of its models underperforming. Market analysts attribute the sales shifts to increased competition and shifting consumer preferences. “New models from Acura, Audi, Chevrolet, Honda, and Porsche, to name a few, are helping drive higher sales. At the same time, established products declined noticeably,” the report said.
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Looking ahead, Kelley Blue Book warned that U.S. EV sales could remain volatile through the rest of 2025. Tariffs on steel and aluminium, as well as ongoing trade tensions with China — a key supplier of battery materials — are expected to strain supply chains. Additionally, there is uncertainty surrounding the future of federal EV incentives, as the new U.S. administration may reconsider climate policies enacted under President Biden.