More than 300,000 electric vehicles were sold in the US during January to March, according to the latest report from Kelley Blue Book. Despite the market growth, not all automakers were represented equally in new EV sales, with Tesla taking the biggest hit, with its sales down by 9% compared to last year.
New electric models from Acura, Audi, Chevrolet, Honda and Porsche are driving higher sales figures for those automakers. General Motors experienced some of the most extreme EV sales growth, with over 30,000 electric vehicles across GM brands being shipped during the first quarter.
EV sales made up 7.5% of all new vehicle sales.
The sales data comes as Tesla has reportedly delayed the production launch of a cheaper version of its Model Y. The more affordable Tesla, which could boost sales for the company, will be delayed by several months, according to Reuters on Friday.
Tesla’s struggles are well publicized. The launch of the Cybertruck has been plagued with recall after recall. The company has also faced intense public backlash in response to Elon Musk’s involvement with the Trump administration as the head of DOGE. The automaker has been the target of showroom protests across the country, with consumer sentiment for the EV company dropping even more rapidly overseas.
The looming market uncertainty is one of the biggest reasons for the first-quarter sales surge. New international tariffs instituted by President Donald Trump will have an outsized effect on the automotive industry. Though just one-third of the EVs sold in the US are imported vehicles, the tariffs will increase the costs of some of the most important materials in the electric vehicle supply chain, including steel and aluminum. China, the country with the highest US-levied tariffs, is also the leading supplier of EV battery materials. The budding trade war threatens to heavily distort the electric vehicle market.
It remains unclear whether the Trump administration will reverse Biden-era EV purchasing incentives. Repealing these initiatives could cause EV sales to plummet in the US market during the second half of 2025.
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