By Joseph Pudlewski Autoblog
Tesla isn't doing so hot
Tesla sales are down in most of the world, but that doesn't mean EV sales are under pressure. The American automaker recently lost its stranglehold on the country's most EV-friendly state, California, where, according to the California New Car Dealers Association, Tesla held a 70% market share in 2022. In Q1 2025, the EV manufacturer's California market share took a dramatic tumble to just shy of 44%. Whether due to competition or political factors, consumers interested in EVs have moved on to other manufacturers, some of which could pose a real threat to Tesla.
Other EV manufacturers are gaining on Tesla
While Tesla is far from out of the fight, other EV manufacturers have seen their sales increase as Tesla's have fallen. General Motors, Ford, and Hyundai are biting at Tesla's heels with gains across the board. Even Honda is getting in on the action, although it's only EV rides on a GM platform. Removing Tesla from the EV segment further proves that other manufacturers are gaining ground.
According to CleanTechnica, non-Tesla EV sales in the United States have increased by 472% since Q1 2021. Interestingly, Tesla sales have traditionally fallen in the first quarter of the past two years. The American EV manufacturer saw its sales fall nine percent year-over-year in Q1 2025 and 23% between Q1 2024 and 2023. That said, Tesla's sales are up 85% if you compare the most recent quarter to Q1 2021.
On the other hand, non-Tesla EV sales were up in the first quarter of every year, and other EV manufacturers combined to outsell Tesla in Q1 2025. After years of sitting above 60% market share, Tesla's crown is finally vulnerable. The automaker currently holds around a 43% market share of all U.S. EV sales, a far cry from its once-dominant stranglehold.
According to Cox Automotive, while Tesla's sales volume declined year-over-year, six other automakers saw their EV sales more than double in the same period. Other manufacturers finally broke into the market with fresh electrified fascias. Still, Tesla isn't alone in its declining sales volume. Lexus, Rivian, and Mercedes-Benz saw their Q1 numbers take a hit as well.
Ford and Chevy lead the charge for Tesla's crown
Let's be clear: Tesla still holds a massive lead in market share over its closest competitor. With Q1 2025 numbers in, that lead sits at 43.2%. Naturally, established brands like Ford and Chevrolet are making progress, but there's still plenty of ground to cover before they truly pose a threat to Tesla. EVs from other automakers are also proving popular, with Hyundai taking a step forward as well.
While Tesla's sales declined year-over-year, Ford saw its EV sales jump by 11.5%, with 22,550 models sold. That brings its Q1 2025 market share to 7.7%. The American automaker has three all-electric models on its roster: the F-150 Lightning, Mustang Mach-E, and E-Transit. The Mustang Mach-E, an electric crossover, led the brand with 11,607 units sold. The F-150 Lightning saw 7,877 examples leave dealer lots, while the E-Transit brought up the rear with 3,756 sold.
Chevrolet saw its EV sales increase by 114% year-over-year, bringing its Q1 2025 EV market share to 6.5%. Chevy may have discontinued the Bolt, but the Equinox EV picked up the slack with 10,329 models sold. The Blazer EV came in second place with 6,187 units heading off dealer lots. The Silverado EV tapped into third place with 2,383 examples sold. In total, Chevy's Q1 2025 sales amounted to 19,186 vehicles. Once you add in its sister brands, GM's market share rises to a much more imposing 10.8%.
At a glance, Hyundai seems like an outlier with just 12,843 EVs sold and a rather measly 4.4% Q1 2025 market share. The Ioniq 5 crossover led the charge with 8,611 units sold, while the Ioniq 6 followed up with sales amounting to 3,318 units. The Kona Electric saw some movement too, with 914 models sold. Notably, the latter two models' year-over-year sales declined by nine percent and 47.8%, respectively. The Ioniq 5's sales, however, increased by 26.2% compared to Q1 2024.
Don't count the Korean automaker out based on its Q1 sales and market share, though. Hyundai recently opened its electric and hybrid vehicle production and battery manufacturing facility in Georgia. With vehicle and component production set to begin on American soil, Hyundai could prove to be a force to be reckoned with in the coming years.
Honda is somewhat of an outlier in the EV space. Its sole electrified entry, the Prologue, is built on the same platform as the Chevy Blazer EV. While it's aesthetically different and includes a few popular features that its Chevrolet counterpart lacks, the performance and range in most setups are nearly identical. Still, Honda sold more than 9,500 examples of the Prologue in Q1 2025. The Japanese automaker trails behind competitors, but it's had some success with its electrified debut.
Tesla delayed its more affordable EV
While range anxiety is certainly a detrimental factor for consumers, price remains a solid barrier for entry into the EV segment. Tesla had planned to produce a more affordable version of the Model Y, its best-selling vehicle, in the first half of this year. Now it looks like production delays will set the American automaker back at least a few months.
According to Reuters, sources indicate that Tesla's more affordable EV could be delayed until the third quarter at the earliest or early 2026 at the latest. On the bright side, Tesla still plans to produce at least 250,000 of its stripped-down Model Ys in 2026. The upcoming EV will be smaller and cost 20% less to manufacture compared to the current Model Y.
Final thoughts
As other automakers introduce more competitive and affordable EVs, Tesla's market share could continue to fall throughout the year. That's not to mention the potential impact of tariffs, should they remain in effect, and CEO Elon Musk's political stances. While Tesla isn't likely to lose its crown in 2025, competition from the likes of Ford, Chevrolet, and Hyundai could overtake the American EV manufacturer over the next few years.
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This story was originally published April 22, 2025 at 11:00 AM.
