In the first quarter of the year, Tesla’s sales in the United States decreased by nearly 9%, despite a growth in the overall electric vehicle market, as reported by a research firm. Buyers have been shifting their preference from Tesla to other models such as General Motors’ Chevrolet Equinox electric vehicle, which is priced around $35,000 and offers a range of over 300 miles per charge, as stated in a report by Cox Automotive.
According to Cox, the sales of all electric vehicles in the U.S. increased by 11% during the first quarter, reaching approximately 300,000 cars and light trucks. This growth rate outpaced the overall automotive market, which remained flat. Electric vehicles comprised about 8% of new domestic car sales, slightly higher than the previous year, Cox noted.
Cox Automotive highlighted that, “Despite many obstacles — and what you may read elsewhere — electric vehicle sales continue to grow at a healthy pace in the U.S. market.”
Tesla, led by CEO Elon Musk, maintains its position as the leading electric car seller in the U.S., commanding 44% of the market, according to Cox. However, this represents a decline from the 51% market share Tesla held the previous year.
This downturn in Tesla’s U.S. sales aligns with a global trend of decreasing deliveries. The company revealed that global deliveries dropped by 13% to 337,000 vehicles for the quarter. Analysts attribute this decline to factors such as Tesla’s outdated model lineup, underwhelming sales of the Cybertruck, increased competition, and Musk’s association with President Donald Trump and right-wing politics. This political stance has led to protests at Tesla dealerships and deterred potential buyers, as Democrats and independents are more inclined to purchase electric vehicles than Republicans. The sales of the Cybertruck have fallen short of Musk’s projections, with Tesla selling 6,400 units during the quarter—though more than double the sales from the previous year, it amounts to only half the volume compared to the last quarter of 2024.
Traditional automakers, initially slow to compete with Tesla in terms of technology and design, have been closing the gap. General Motors sold 10,300 Equinoxes in the quarter, a model that was unavailable the previous year. GM brands, which include Cadillac and GMC, captured 11% of the electric vehicle market over the quarter, an increase from the 6% share a year prior.
The Ford Mustang Mach-E emerged as the bestselling non-Tesla electric vehicle, as per Cox’s data. However, sales of the electric Mustang might face challenges ahead, due to its production in Mexico and exposure to Trump’s 25% tariff on imported cars, potentially forcing Ford to increase its prices.
Tesla is expected to experience lesser impacts from Trump’s trade policies, as it manufactures all U.S.-sold cars in California and Texas. Nevertheless, the company has halted sales to Chinese customers for its luxury Model S and Model X, which are produced only in California, following China’s imposition of substantial tariffs on U.S. imports in response to Trump’s tariffs.