- Tesla sales fell almost 9% in the first quarter compared with Q1 2024, even as overall electric vehicle sales rose a healthy 10.6% to 294,250 cars and trucks.
- Even so, Tesla’s Model Y remained the best-selling single EV model in the US last quarter.
- The likelihood that new vehicle prices will go up significantly over the Trump administration’s 25% tariff on all imported autos helped drive overall vehicle sales to its highest since March and April 2021.
If you have been following news of the protests at Tesla dealerships over CEO Elon Musk tearing through the federal government with his Department of Government Efficiency (DOGE), you won’t be surprised to learn sales for the pioneering EV brand have taken a hit.
Tesla sales fell by 8.6% in the first quarter of the year compared with Q1 2024, according to the Kelly Blue Book Electric Vehicle Sales Report, even as overall electric vehicle sales rose a healthy 10.6% to 294,250 cars and trucks. General Motors took second place in last quarter’s EV sales, and new models from Honda and Acura, and to a lesser extent Dodge and Jeep, helped maintain the segment.
Tesla, in Q1 of ’25, had about 3% share of the overall US market and 43.5% of the EV market, KBB says in its report.
Production for the Tesla Cybertruck, poster pickup for young tech bros, was just beginning to ramp up last year, so it showed a gain of 128.5% over Q1 2024 sales, to 6,406. Ford outsold Cybertruck with 7,187 F-150 Lightnings, down 7.2%. Chevrolet sold 2,383 Silverado EVs, up 124.6%, and GMC sold 1,249 Sierra EVs. Rivian sold 1,727 R1Ts, down 47%.
The likelihood that new vehicle prices will go up significantly over the Trump administration’s 25% tariff on all imported autos—on top of the White House’s 25% tariff on Canadian aluminum and steel, and tariffs on parts and components that can cross borders several times before becoming part of vehicles assembled in the US—helped drive overall vehicle sales to a Seasonally Adjusted Annual Rate of 17.8 million, highest since March and April 2021, according to Motor Intelligence and Global Data.
In January, Cox Automotive projected full-year 2025 US auto sales will be in the 15.6- to 16.3 million range, a range that could be on the optimistic side as tariffs take their toll.
Meanwhile, on Friday China raised its tariff on US imports to 125% after the Trump White House raised tariffs on Chinese imports to 145%. Tesla shortly after removed order buttons for its Models S and X otherwise imported into China, The New York Times reported Friday. Tesla assembles Model 3 and Model Y in a Chinese factory, as well as in the US.
The threat consumers may soon lose the chance to take advantage of the $7,500 tax credit for many EV intenders was another boost to first quarter EV sales. On the day of his inauguration, January 20, President Trump issued the executive order, “Unleashing American Energy,” which includes Policy e; “to eliminate the ‘electric vehicle mandate’ and promote true consumer choice, which is essential for economic growth and innovation” including “elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies and effectively mandate their purchase … by rendering other types of vehicles unaffordable.”
But the Trump administration has not stopped EV tax credits yet. Elon Musk was in favor of dropping the $7,500 federal tax credit on some EVs when removing them might have stifled sales of new Tesla competitors. As of Friday, Tesla still lists the $7,500 credit as a discount against its manufacturer’s suggested retail price for Models 3 and Y and the base Cybertruck.
There is no real way of knowing how much of Tesla’s first quarter sales plunge can be attributed to the backlash against Musk and DOGE, and how much is the result of growing competition, especially from “legacy” auto brands. The current quarter’s sales results, which will be reported in early July, will be more telling.
Tesla’s Model Y, in fact, remained the best-selling single EV model in the US last quarter, though sales fell by more than a third to 64,051. The second-bestselling EV, Tesla’s Model 3, was up 70.3% to 52,520, according to KBB.
The Ford Mustang Mach-E was third in sales, up 21% to 11,607, and Chevrolet sold 10,329 of its new Equinox EVs for fourth place.
Other sales numbers:
- GM EV sales climbed to second behind Tesla, with 31,886, to Hyundai/Kia/Genesis’ 22,995 and Ford’s 22,550.
- Porsche enjoyed the biggest EV kick, up 249.5% to 4,358. Toyota was up 195.7% to 5,610, and Volvo was up 172.9% to 2,718.
- Mercedes-Benz took the biggest hit by percentage, down 58.3% to 3,472. Rivian sales fell 37.1% to 8,553.
- Honda sold 9,561 Prologues and 4,813 Acura ZDX models, both products of the short-lived GM partnership using its platform previously known as Ultium.
- Cadillac sold 1,956 Escalade EVs and 1,716 Optiqs, at the expense of Lyriq sales, which fell 25.9% to 4,300.
- BMW EV sales rose 26%, to 13,538, including 7,125 i4s, up 57%, and 3,626 iXes, up 23.1%.
- Volkswagen sold 9,564 EVs, up 55.1%.
- Nissan sold 6,471 EVs, up 22.5%.
Notable new models include:
- Dodge Charger EV: 1,947
- Jeep Wagoneer: 2,595
- Porsche Macan: 3,339
- VW ID.Buzz: 1,901
Todd Lassa
Contributing Editor
As a kid growing up in Metro Milwaukee, Todd Lassa impressed childhood friends with his ability to identify cars on the street by year, make, and model. But when American automakers put an end to yearly sheetmetal changes, Lassa turned his attention toward underpowered British sports cars with built-in oil leaks. After a varied early journalism career, he joined Autoweek, then worked in Motor Trend’s and Automobile’s Detroit bureaus, before escaping for Mountain Maryland with his wife, three dogs, three sports cars (only one of them British), and three bicycles. Lassa is founding editor of thehustings.news, which has nothing to do with cars.
