Despite the political firestorm over the potential demise of the federal clean vehicle credit and the looming threats of tariffs on car imports, American appetite for EVs isn’t fading. Not yet, at least. The U.S. set a new record for February EV sales, even though month-over-month sales dipped by 5.9% and the market share for battery powered vehicles declined marginally to 7.7%.
According to Cox Automotive, EV sales in the U.S. increased 10.5% in February year-over-year to 95,692 units. BMW and Rivian saw some of the biggest gains in terms of percentages, both selling over 4,000 units. BMW’s EV sales grew 21% whereas Rivian witnessed 34% growth month-over-month. The top-five selling EVs in February were the Tesla Model Y, Model 3, Ford Mustang Mach-E, Honda Prologue and the Rivian R1S.
Tesla may still be on top, but its dominance is dwindling. Tesla sales were down 10% compared to the previous month, with the Model Y dropping 3.1%, Model 3 falling 17.5% and the Cybertruck plunging 32.5%. Note that the Model Y was down less than the overall EV market month-over-month, but the others fared far worse.
This comes as CEO Elon Musk has been on a rampage, dismantling key U.S. agencies under his newly formed Department of Government Efficiency and firing thousands of American workers.
The DOGE leader’s alignment with far-right politics is also having a ripple effect on his own company, with Tesla sales plummeting worldwide. Protests against Musk have erupted across the world and Canada has even started locking Tesla out of key incentive programs.
Now signs are emerging that the U.S. could be another market where Tesla sales fall.
Tesla is an EV behemoth and its decline could be troubling for the broader EV market, especially in the U.S., where it still accounts for 39.9% of EV sales, per Cox. But other automakers are seemingly absorbing Tesla’s slack.
As InsideEVs reported last week, Ford EVs were up 15% year-over-year in February. American Honda sold nearly 3,000 Prologues and 1,500 Acura ZDXs last month. Hyundai and Kia’s hot streak continued with the Ioniq 5, Ioniq 6 and EV9 witnessing year-over-year gains. And the Volkswagen ID.4 was the third best-selling EV in the U.S. in January.
We’re not counting Tesla out just yet. The automaker has a busy year ahead for product launches and technology upgrades. Deliveries of the refreshed Model Y have started in the U.S., upgrades are reportedly coming to the Model S and Model X later this year and Robotaxi launch is due in June. Tesla also plans to install a new dry cathode battery in the Cybertruck in the coming months.
No one really expected this one-in-a-lifetime shift in mobility to be easy. It’s full of roadblocks, twists and turns, but one thing seems increasingly clear: Electrification is here to stay, in one form or the other.
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