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Tesla, GM, and Honda drive U.S. EV sales to new heights

As EVs with advanced battery technology continue to hit American roads, 2025 is expected to set another sales volume record.

Electric vehicle (EV) sales in the U.S. surged in 2024, with a 15.2% year-over-year increase in the fourth quarter, totaling a record 365,824 units. This brought full-year EV sales to 1.3 million, marking a 7.3% increase over the revised total for 2023, according to Cox Automotive’s Kelley Blue Book. The strong performance was driven by a combination of automaker incentives, appealing lease deals, and federal and state incentive programs.

General Motors and Honda were particularly influential in the sales boost, selling nearly 80,000 more EVs in 2024 than the previous year. Other automakers, such as Hyundai and Ford, also contributed to the increase in EV volume. While Tesla’s sales fell by more than 37,000 units compared to 2023, it remains the dominant player in the EV market, with its Model Y and Model 3 accounting for more than 40% of all EVs sold in the U.S. Notably, the Tesla Cybertruck made its debut as the fifth best-selling EV, while the Ford Mustang Mach-E and Hyundai Ioniq 5 followed as top non-Tesla models.

The U.S. EV market continues to be highly competitive, with 68 mainstream EV models tracked by Kelley Blue Book. Of these, 24 models saw year-over-year sales increases, 17 were all-new models, and 27 experienced a decline, including discontinued models like the Chevrolet Bolt and Mazda MX-30.

Top 10 Best-Selling EV Models of 2024:

  1. Tesla Model Y
  2. Tesla Model 3
  3. Ford Mustang Mach-E
  4. Hyundai Ioniq 5
  5. Tesla Cybertruck
  6. Ford F-150 Lightning
  7. Honda Prologue
  8. Chevrolet Equinox
  9. Cadillac Lyriq
  10. Rivian R1S

The Honda Prologue marked a major achievement, with over 33,000 units sold in its first year, a major improvement after having zero sales in 2023.

EV market growth

However, in the last four years, more than 2.5 million EVs have been sold in the U.S. The 2024 sales totaled 1.3 million units, accounting for 8.1% of total vehicle sales—up from 7.8% in 2023. Despite the slower rate of growth, volume continues to increase, with over 700,000 EVs sold in the second half of 2024 alone, making up 8.7% of total new vehicle sales.

According to Cox Automotive, they forecast continued EV sales growth in 2025, with over 15 new models set to hit the market, improved charging infrastructure, and ongoing incentives from automakers. Sales are projected to reach nearly 10% of total U.S. vehicle sales, with one in every four vehicles expected to be electrified somehow—whether through hybrids, plug-in hybrids, or fully electric vehicles. Policy changes in Washington could slow this growth, but these are unlikely to take effect immediately, allowing continued momentum in the EV market.

As EVs with advanced battery technology continue to hit American roads, 2025 is expected to set another sales volume record, reinforcing the ongoing shift toward electrification in the U.S. automotive market.

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