Tesla Holds Top Spots in 2024 EV Sales While Market Broadens
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Tesla Holds Top Spots in 2024 EV Sales While Market Broadens

Electrify Expo Seattle 2024 Tesla Model Y demo
  • Tesla’s Model Y and Model 3 made up over 40% of 2024 U.S. EV sales despite declining numbers.
  • The Ford Mustang Mach-E led non-Tesla EVs, followed by the Hyundai Ioniq 5 and Tesla Cybertruck.
  • General Motors and Honda added nearly 80,000 EV sales, while Volkswagen and Mercedes-Benz saw declines.

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In Q4 2024, EV sales in the U.S. climbed to a record 365,824 units, according to Cox Automotive’s Kelley Blue Book. This 15.2% year-over-year growth capped a year that saw a total of 1.3 million EVs sold, a 7.3% increase from 2023. With these numbers, it’s clear that consumers are beginning to view EVs as everyday transportation solutions rather than futuristic alternatives.

“Cox Automotive is optimistic about 2025, with plenty of reasons to believe it will be the best year since 2019,” said Jonathan Smoke, Chief Economist at Cox Automotive

With better economic conditions and growing confidence among consumers, automakers and buyers are finding now to be a great time to explore the expanding EV market.

Electric Vehicle Sales Volume Change by Automaker 2024 vs 2023 chart by Cox Automotive's Kelley Blue Book
Electric vehicle sales volume change by automaker: 2024 vs 2023 (Cox Automotive).

Tesla Dominates 2024 EV Sales as Competition Intensifies

Tesla remains a dominant force in EV car sales, with the Model Y and Model 3 maintaining their positions as the two best-selling EVs in the U.S. Combined, they accounted for over 40% of all EV sales in 2024. However, these models showed signs of fatigue, with declining sales as the competition heated up.

The Ford Mustang Mach-E earned the title of the best-selling non-Tesla EV, with the Hyundai Ioniq 5 and Tesla Cybertruck following closely. New entrants like the Honda Prologue, which sold 33,000 units in its debut year, also made waves.

Electrify rEViewed: Ford Mustang Mach-E and Tesla Model Y

General Motors and Honda showed impressive growth, contributing nearly 80,000 additional EV sales compared to the prior year. Meanwhile, legacy automakers like Volkswagen and Mercedes-Benz saw reduced volumes, reflecting the hypercompetitive nature of the market.

According to Cox Automotive, “The EV market in the U.S. is hypercompetitive: Of the 68 mainstream EV models tracked by Kelley Blue Book, 24 models posted year-over-year sales increases; 17 models were all-new to the market; and 27 decreased in volume.”

This variety in performance highlights how quickly consumer preferences are changing and why creating new products is essential.


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List of Top 10 EV Models in the U.S.

  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


Lower Costs and Incentives Make EVs More Accessible

One major contributor to the record-breaking EV sales in 2024 was the strong array of federal and state incentives, complemented by aggressive manufacturer lease deals. Some EV leases in late 2024 started as low as $159 per month, making them accessible to a broader range of buyers.

Jonathan Smoke highlighted this trend, stating, “Credit availability should continue to expand as loan portfolio performance improves and yield spreads narrow. Auto loan rates have declined, and approval rates are increasing, enabling growing demand.”

With lower financing hurdles, shoppers had the opportunity to consider EVs not just for their environmental benefits but for their affordability, convenience, and long-term savings.

Hyundai IONIQ 5 at Electrify Expo San Francisco
The 2024 Hyundai Ioniq 5 EV lease deals started as low as $159 per month with minimal down payments.

Electrified Vehicles Expected to Make Up 25 Percent of 2025 Sales

As we move into 2025, electrified vehicles, a category encompassing hybrids, plug-in hybrids, and pure EVs, are projected to make up 25% of all new-vehicle sales. Pure EVs alone are expected to account for 10%, climbing from 7.5% in 2024. This change reflects how people are becoming more familiar with EV technology and are welcoming the growing variety of models designed to meet diverse needs.

This year’s market will introduce 15 new EV models, ranging from entry-level options to luxury SUVs. For those hesitant about EVs, hybrids and plug-in hybrids offer a middle ground, providing the benefits of electric driving with the reassurance of a gas engine.


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Used EVs Gain Popularity as Affordable Options in 2025

For buyers looking to enter the EV market on a budget, used EVs are becoming an increasingly viable option. In 2025, used car sales are expected to reach 20.1 million units, the strongest year for this segment since 2021. While used EV inventory remains tighter than for traditional vehicles, advancements in battery technology and increased availability are helping stabilize demand.

Today’s used EVs offer improved range and reliability compared to earlier models, making them attractive to cost-conscious buyers. However, patience and thorough research remain essential for finding the best deals in this evolving market.


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EVs Are Practical and Fun

Automakers are shifting their messaging to highlight the practicality and fun of EVs. Instant torque and quiet operation make them a joy to drive, while advanced technology like hands-free driving and seamless smartphone integration enhances everyday convenience.

And events like Electrify Expo provide hands-on experiences, allowing consumers to test-drive EVs in a stress-free environment and better understand their benefits.

As EVs become more integrated into daily life, the industry’s focus is no longer just on sustainability but on delivering a superior driving experience that appeals to a broader audience.

GM Q3 Results Show Strong Revenue Higher 2024 Forecasts and EV Momentum - GMC Hummer EV SUV Pickup Truck Electrify Expo

One in Four Vehicles Sold in 2025 Expected to Be Electric

By 2025, one in four vehicles sold is expected to be electric or electrified. With better charging infrastructure, strong incentives, and a wider range of models available, EVs are becoming a practical choice for everyday drivers.

“Each year, more electric vehicles with advanced battery technology are making their way onto America’s roads,” noted Jonathan Smoke. Over the past four years, more than 2.5 million EVs have been sold, with sales continuing to increase steadily.


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IMAGES: ELECTRIFY EXPO, COX AUTOMOTIVE

FTC: We use income-earning auto affiliate links. Learn more.

AUTHOR: 

RANDI BENTIA

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