- General Motors surpassed Hyundai Motor Group to become America's second-best-selling EV brand, but the Korean automaker has sold more year-to-date.
- But Tesla is still in the no. 1 spot as the Cybertruck becomes the third best-selling EV in Q3.
- New models, increasing charging infrastructure and attractive lease deals continue fueling EV adoption across the U.S.
Electric vehicle sales hit a new record in the U.S. in Q3, driven by attractive lease deals, financing offers and a growing appetite for affordable models among American car buyers. Despite all the political noise around EVs and negative headlines in financial papers, automakers are having a moment selling their battery-powered cars.
According to car trading and market insights firm Cox Automotive, automakers sold an estimated 346,309 EVs in the third quarter, a 5% increase from the second quarter. EVs accounted for 8.9% of the total auto sales—the highest ever on record—marking an increase from 7.8% during the same period last year.
"With improving infrastructure, far more choices, and excellent deals to be had, the team expects further growth in the months ahead," Cox Automotive analysts wrote. "A 10% share is well within reach.
Tesla Rebounds
Tesla rebounded after consecutive quarters of sales decline, thanks mainly to the Cybertruck and the refreshed Model 3. The automaker's sales were up 6.6% year over year in the third quarter as the Cybertruck is now the third best-selling electric car in the U.S. behind the Model Y and the Model 3.
Tesla delivered 16,692 units of the stainless steel trapezoid in Q3 as its production ramps up at Gigafactory Texas. It has left its rivals in the dust. By comparison, Ford sold just 7,162 units of the F-150 Lightning, the second-best-selling electric truck in the U.S.
The refreshed Model 3 climbed nearly 10%, going from 53,241 units in Q3 2023 to 58,423 in Q4 2024, which shows that EV buyers are still warming up to newer and more modern Teslas. On the other hand, the aging Model Y saw its sales drop by 9.1%, decreasing from 95,539 in Q3 2023 to 86,801 in Q3 2024.
Still, the Model Y remains the best-selling EV on the market today.
| Best-selling EVs (Cox Auto) | Q3 2024 | Q3 2023 | YoY % Change |
| Tesla Model Y | 86,801 | 95,539 | -9.1 |
| Tesla Model 3 | 58,423 | 53,521 | 9.7 |
| Tesla Cybertruck | 16,692 | - | - |
| Ford Mustang Mach-E | 13,392 | 14,842 | -9.8 |
| Honda Prologue | 12,644 | - | - |
| Hyundai Ioniq 5 | 11,590 | 11,665 | -0.6 |
| Chevy Equinox EV | 9,772 | 18 | - |
| Chevy Blazer EV | 7,998 | 19 | - |
| Rivian R1S | 7,245 | 9,183 | -21.1 |
| Total (estimated) | 346,309 | 311,853 | 11% |
GM Shines, Honda Surprises
General Motors also pulled a major electric comeback in the third quarter. It's now America's second best-selling EV brand behind Tesla, ahead of the Hyundai Motor Group and Ford which fell into the third and fourth spots.
GM's EV deliveries increased 60% year over year and 46% compared to the previous quarter. After getting bogged down by software issues and production challenges last year, GM EVs are a bright spot in its overall auto sales, which were down 2.2% in Q3.
The Equinox EV is now GM's best-selling model, with 9,772 units sold in Q3, whereas GM delivered nearly 8,000 units of the Blazer EV.
Cadillac continues to be the leader among premium brands, with its EVs outselling all models from BMW, Mercedes-Benz, Audi and Lexus. Sales of the Cadillac Lyriq alone are up 281% since last year.
Honda is also emerging as a promising contender in this space. It sold 12,644 units of the Prologue whereas Acura sold 2,646 ZDXs, both of which are based on GM's Ultium platform. That means the Prologue outsold both the Equinox and the Blazer, GM's top two EVs.
Hyundai Motor Group Is Still The Year-To-Date Champion (After Tesla, Of Course)
But while GM rose to second place after Tesla with its Q3 sales, as the Hyundai Motor Group's brands' sales were "generally flat year over year at 29,609," the Korean conglomerate has still sold more EVs this year than GM. When Hyundai, Kia and Genesis sales are combined, the group moved 89,589 EVs at the close of the third quarter. GM's brands—Chevrolet, Cadillac, GMC and the BrightDrop commercial van unit—saw sales of 70,450 EVs this year at September's end.
It's unclear why the Hyundai Motor Group's sales saw a flat quarter in Q3, although some buyers could be waiting for U.S.-made models like the new 2025 Hyundai Ioniq 5. In addition to qualifying for tax credits at purchase and not just with a lease, that car will also come equipped from the factory with a Tesla-style North American Charging Standard (NACS) plug.
Still, it's going to be interesting to see whether GM or Hyundai can close out this year as the non-Tesla EV sales leader. (And had GM kept the Chevrolet Bolt around this year, this race would not have even been close.)
By the end of Q3, Tesla had sold 493,513 EVs, making it still far and away the U.S. electric sales leader.
Lease Deals Fuel Growth
Not all of this growth was completely organic. Lease deals, discounts and tax credits helped automakers get these models off the lots. As of July 2024, the industry leasing average was 22.2% whereas a whopping 42.7% of all EVs sold were leased.
Leasing remains popular because buyers can obtain tax credits at the point of sale regardless of the model. That means lease offers are not restricted by battery sourcing and manufacturing requirements the way purchasing options are.
Purchasing remains expensive as the average transaction price for EVs is over $57,000 compared to the industry-wide ATP of around $48,000. That's why for a growing number of buyers, the leasing and financing options make sense.
Cox Auto noted that while the deals and incentives are a big part of the growth, so is the expanding selection of EVs and improved charging infrastructure. With 1,000 new chargers added every week in the U.S. and Tesla's Supercharger network growth back on track, buyers are finding that going electric is a whole lot easier compared to a year ago.
“While year-over-year growth has slowed, EV sales in the U.S. continue to march higher,” said Stephanie Valdez Streaty, Director of Industry Insights at Cox Automotive. “The growth is being fueled in part by Incentives and discounts, but as more affordable EVs enter the market and infrastructure improves, we can expect even greater adoption in the coming years.”
Contact the author: suvrat.kothari@insideevs.com
