Get ready for an unusual turn in the US electric vehicle market, despite worldwide sales …

2025.

EV sales in the U.S. experienced a slight decrease in 2024, primarily because the leading company, Tesla, faced challenges. The upcoming year holds uncertainties in the electric vehicle market due to potential changes in government incentives under the new Trump administration. However, the overall shift from traditional gasoline engines to electric motors on a global scale remains inevitable and steady, a change influenced by both technological advancements and economic developments rather than by individual countries or leaders. The main variable affecting the transition is its pace.

In 2024, U.S. EV sales totalled 1.3 million units, showing a 7.3% increase compared to the previous year, according to Kelley Blue Book and Cox Automotive. The EV market share represented 8.1% of overall U.S. car and light truck sales, up from a slight 0.3% in the previous year. Despite the slowdown in growth, Sean Tucker from Kelley Blue Book acknowledged that the sales momentum continued to progress, albeit at a more tempered pace. Tesla faced internal obstacles with sales decreasing by 5.6% to 633,762 vehicles in 2024, attributed to the lack of significant updates to their major models. Their Cybertruck was a successful introduction, although struggles with their flagship models, the Model Y and Model 3, counterbalanced this success.

The slowdown in Tesla’s sales was offset by other automakers, such as Ford, which saw a 34.8% increase in EV sales with 97,865 units sold. Additionally, brands like Kia, Honda, and Cadillac reported substantial growth in EV sales. Notable new models like the Chevrolet Equinox EV and Honda Prologue were introduced in 2024, alongside the Cybertruck. Globally, EV sales soared with 17.1 million units sold, marking a 25% increase, led by China with 11 million sales. Europe experienced a slight decline in sales and the U.S. and Canada saw combined growth of 9%.

Incentives like the $7,500 tax credit in the U.S. play a crucial role in the affordability of EVs, closing the price gap between electric models and gasoline counterparts. However, fewer vehicles now qualify due to stricter regulations. The uncertainty surrounding the future of these incentives under the Trump administration leaves analysts and consumers unsure about the market’s upcoming trends. Despite the unpredictability, experts expect a moderate increase in EV sales in the U.S. in 2025.