Beatrice Lang
Electric vehicles (EVs) are growing in popularity worldwide, with global sales of non-electric cars peaking in 2018. In 2024, electric vehicle sales in the US hit a record 1.3 million, an increase of 7.3% from 2023. This growth was driven by strong incentives from automakers, excellent lease deals, and federal and state incentive programs. Tesla has been a dominant player in the EV market, with its Model 3 and Model Y accounting for more than 40% of all EVs sold in 2024. However, other automakers like General Motors, Honda, Hyundai, and Ford have also made significant strides in the EV market. As government incentives, improving charging infrastructure, and technological advancements drive the adoption of EVs, it is expected that sales will continue to grow in the coming years.
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What You'll Learn
Electric vehicle sales in the US hit 1 million in 2023
Electric vehicle (EV) sales in the US hit a record 1 million in 2023, with Americans buying 1,189,051 electric vehicles, according to data from Kelley Blue Book. This represents a 7.6% share of the total US vehicle market in 2023, up from 5.9% in 2022.
The US is one of the largest markets for electric vehicles, along with China and Europe, which together account for around 95% of all sales in 2023. The growth in EV sales in the US is due to several factors, including price cuts by manufacturers, government incentives, and an increasing number of model options. Tesla's price cuts, for instance, brought its two most affordable cars, the Model Y SUV and Model 3 sedan, into closer reach for more Americans. The Model 3 has been Tesla's most successful model, with its sleek design, impressive range, and advanced technology, captivating many customers.
In 2023, the number of EV models available to consumers increased by 15% compared to the previous year, with 70 BEV models out of 459 unique LDV models. The increase in model options, along with manufacturer price cuts and incentives like the Clean Vehicle Credit and Qualified Commercial Vehicle Credit from the Inflation Reduction Act, contributed to the rise in EV sales. Despite a semiconductor chip shortage, sales of EVs in the US continued to grow, with more than 2.5 million EVs sold in the past 48 months.
The shift towards electric vehicles is also driven by their lower carbon footprint compared to petrol or diesel cars. This "carbon debt" is quickly offset once EVs are on the road, and the savings are higher in countries with cleaner electricity sources. The growth in EV sales is expected to continue, with electric cars potentially accounting for 20% of total car sales by the end of 2024.
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Tesla's Model 3 and Y drove sales
Electric vehicle sales in the US hit 1 million in 2023, with a record-breaking 1.2 million electric vehicles sold. The following year, in 2024, sales continued to grow, reaching 1.3 million.
Teslas Model 3 and Y Drove Sales
Tesla has dominated the electric vehicle market for years, and its Model 3 and Model Y have been the best-selling electric vehicles in the US by a long margin. In 2023, 55% of the electric vehicles purchased by Americans were Tesla products, with one out of every three EVs sold being a Model Y.
The Model 3 and Model Y are Tesla's two most affordable cars, and the company's aggressive campaign of price cuts has helped to boost sales. In 2024, the Model Y and Model 3 accounted for more than 40% of all EVs sold.
However, Tesla's sales have been facing competition from other brands, and in 2024, its sales were estimated to be lower year over year by more than 37,000 units. This could be due to CEO Elon Musk's waning image with some consumers, as well as the increase in sales from other brands.
In 2025, Tesla's used car prices are falling at three times the rate of the rest of the used car market, and searches for used Teslas have dropped 7% year over year. This could be due to the increasing competition in the EV market, with consumers having more choices beyond Tesla, including fresh designs from other brands.
Despite this, Tesla was still the top-selling brand in 2024, accounting for just under half of all EV sales.
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US sales jumped 15.2% in Q4 2024
Electric vehicle (EV) sales in the US jumped 15.2% year-over-year in the fourth quarter of 2024, reaching a record-breaking volume of 365,824. This surge in sales pushed the full-year EV sales in 2024 to 1.3 million, an increase of 7.3% from the upwardly revised total of 1,212,758 units in 2023. This growth was driven by strong incentives from automakers, attractive lease deals, and federal and state incentive programs. Notably, General Motors and Honda Motor Co. contributed significantly to this increase, selling nearly 80,000 more EVs in 2024 compared to the previous year.
The Tesla Model Y and Model 3 continued to be the best-selling electric vehicles in the US, despite experiencing sales declines due to competition from other brands. These two models accounted for more than 40% of all EVs sold in 2024. The Ford Mustang Mach-E took the top spot as the best-selling non-Tesla EV, followed by the Hyundai Ioniq 5. Tesla's Cybertruck also made its mark, ranking 5th in overall EV sales.
Hyundai Motor Group and Ford Motor Company also significantly increased their EV sales in 2024. However, Tesla reported lower sales than the previous year, which may be attributed to the declining image of its CEO, Elon Musk, among some consumers. Despite this, Tesla remained the top-selling brand, accounting for just under half of all EV sales.
The growth in EV sales is expected to continue into 2025, with Cox Automotive forecasting that sales of EVs will likely account for close to 10% of total sales. This prediction is based on the anticipated introduction of more than 15 new products, improvements in charging infrastructure, and continued support from automakers. However, policy changes in Washington could potentially slow down this growth, but any impact is not expected to be immediate.
The shift towards electric vehicles in the US is evident, with more than 2.5 million EVs sold in the past 48 months. This trend showcases the increasing consumer demand, improved charging infrastructure, and the environmental sensitivity driving the adoption of electric vehicles.
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Sales in 2024 were 7.3% higher than 2023
Electric vehicle (EV) sales in the United States hit a record high of 1.3 million in 2024, marking a 7.3% increase from 2023. This growth was driven by strong incentives from automakers, attractive lease deals, and federal and state incentive programs. Notably, General Motors and Honda Motor Co. contributed significantly to this increase, selling nearly 80,000 more EVs in 2024 compared to the previous year. Other manufacturers, such as Hyundai Motor Group and Ford Motor Company, also played a role in this upward trend.
While Tesla experienced a slight decline in sales, it remained a dominant force in the EV market. The Tesla Model Y and Model 3 continued to be the best-selling electric vehicles in the US, accounting for over 40% of all EVs sold. However, competition intensified as other brands gained traction. The Ford Mustang Mach-E emerged as the top-selling EV outside of the Tesla brand, followed by the Hyundai Ioniq 5.
The surge in EV sales in 2024 can also be attributed to the introduction of new models. Notably, the Tesla Cybertruck, Honda's first EV—the Prologue, and the all-electric version of Chevrolet's Equinox contributed to the growing variety of electric vehicles available to consumers. This trend is expected to continue, with over 15 new electric vehicles planned for release in the following year.
The growing popularity of electric vehicles in the US is evident, with more than 2.5 million EVs sold in the past 48 months. This shift towards electrification is supported by advancements in battery technology, making electric vehicles an increasingly mainstream choice for consumers. The year 2024 marked a significant milestone, demonstrating the accelerating adoption of electric vehicles and setting the stage for further growth in the coming years.
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Global sales of electric cars are growing
In the US, Tesla has been the market leader for years, with its Model 3 and Model Y accounting for more than 40% of all EVs sold in 2024. However, Tesla's market share has been decreasing since 2022, with other brands such as GM, Honda, Hyundai, and Ford steadily increasing their EV sales. In 2024, GM and Honda together sold nearly 80,000 more EVs than in 2023.
The growth in EV sales can be attributed to various factors, including government subsidies, improving charging infrastructure, increasing range, lower battery costs, and environmental concerns. Additionally, automakers have offered strong incentives, excellent lease deals, and federal and state incentive programs, making EVs more accessible to consumers.
The increasing popularity of EVs is not limited to the US market. For example, Germany had a stock of over 1.1 million plug-in passenger cars in circulation as of January 2022, while India has implemented schemes such as the Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) to encourage EV purchases.
As the world transitions towards an electrified future, it is expected that sales of electric vehicles will continue to grow, with more consumers opting for environmentally friendly and technologically advanced options.
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Frequently asked questions
Electric vehicle sales first hit 1 million in 2021.
Tesla was responsible for this milestone.
The Tesla Model 3 played a pivotal role in this success.
There are now more than 40 million electric cars in use globally.
Germany has the largest stock of plug-in electric vehicles in Europe with 1,184,416 plug-in cars in circulation on 1 January 2022.
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