GM gains ground as American EV contracts in 2025

16 January 2026

The American market for electric cars hit a speed bump in 2025. For the first time in many years, the number of people buying these high-tech machines actually went down. Dealerships usually see more shoppers every year, but 2025 ended with about 1.28 million units sold. This was a 2 percent drop from the 1.3 million sales recorded in 2024.

There were several reasons for this shift, including the end of government tax credits and prices that stayed way too high for many families. Even though there are more choices than ever, some drivers decided to wait before making the switch to electric.

Tesla kept its spot as the biggest name in the American EV market, but its grip on customers is loosening. In 2024, nearly half of all electric cars sold in the US carried the Tesla badge. By the end of 2025, that number fell from 48.7 percent to 46.2 percent. The company sold 589,160 vehicles during the year, which was a 7 percent decrease compared to the year before. The Tesla Model Y is still the most popular electric car in the country, with 357,528 units delivered, but even its sales slipped by 4 percent.

Tesla might be getting the cold shoulder treatment, but General Motors had a very successful year. The company sold 169,887 EVs in 2025, which is a massive 48 percent jump over its 2024 performance. Chevrolet was a major reason for this win. The Chevrolet Equinox EV became a favorite for many buyers, doubling its sales to reach 57,945 units.

Cadillac also had a great year, growing its sales by over 69 percent to reach 49,152 vehicles. GM is proving that offering a variety of different models can attract people who were not interested in electric cars before.

Not every traditional car brand shared in the success. Ford struggled to keep up, seeing its sales drop by over 14 percent to 84,113 units. The Ford F-150 Lightning saw an 18.5 percent decline as only 27,307 people drove one home. Other brands like Kia and BMW also saw fewer customers. Kia had a particularly rough time, with sales crashing nearly 40 percent. These numbers show that just having an electric car for sale is not enough anymore. Buyers are looking for specific features and better deals before they open their wallets.

Some international brands managed to find a few bright spots in the data. Volkswagen saw its sales grow by nearly 57 percent, led by the ID.4 model, which sold 22,373 units. Honda also moved up the ladder with its Prologue model, selling 39,194 vehicles. Hyundai stayed steady as well, with its Ioniq 5 selling 47,039 units. These companies are fighting hard for the customers who are moving away from Tesla. Even though the total market shrank a little bit, the competition between the brands is getting much more intense.

The US electric car industry is entering a new phase. We are no longer seeing the wild, rapid growth of the early years. Instead, the market is maturing. With 1.28 million sales, EVs are still a huge part of the American car world. Car makers will have to work a little bit harder to lower prices and offer better technology if they want to see those numbers go back up in 2026.

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