Tesla’s U.S. Sales Slide as GM and Legacy Automakers Gain Ground in EV Market

New York: Tesla’s dominance in the American electric vehicle (EV) market is slipping as rival automakers make rapid gains. According to data released by Cox Automotive, Tesla's U.S. sales fell nearly 9% in the first quarter of 2025, even as the overall EV market grew by 11% during the same period.

The data shows a growing consumer shift toward more affordable and newer electric models, including General Motors’ Chevrolet Equinox EV, which starts around $35,000 and offers a range of over 300 miles on a single charge.

“Despite many obstacles—and what you may read elsewhere—electric vehicle sales continue to grow at a healthy pace in the U.S. market,” Cox Automotive noted in its quarterly report.

Tesla’s Market Share Shrinks

Tesla, led by CEO Elon Musk, continues to sell more EVs in the U.S. than any other automaker, but its market share declined to 44%, down from 51% a year ago. The first-quarter delivery figures follow a 13% global decline in Tesla shipments, down to 337,000 vehicles.

Analysts point to several contributing factors:

• Aging vehicle lineup with minimal new model launches

• Underwhelming sales of the Cybertruck

• Escalating competition from traditional automakers

• Musk’s political alignment with Donald Trump, which has sparked backlash from EV-friendly consumer segments

“The combination of outdated offerings and controversial public stances has alienated a portion of Tesla’s traditional customer base,” said one industry analyst.

Cybertruck Falls Short of Expectations

Sales of Tesla’s highly anticipated Cybertruck continue to underperform. The company delivered 6,400 units in Q1, a significant jump from early production numbers last year, but still down 50% from Q4 2024.

The futuristic pickup, once touted as a market disruptor, has failed to meet Musk’s ambitious delivery goals and has faced quality and production criticisms.

Traditional Carmakers Close the Gap

Legacy automakers have made substantial progress in the EV race. General Motors (GM) sold 10,300 Equinox EVs during the quarter—up from zero a year ago—and now holds 11% of the U.S. EV market, nearly doubling its share from 6% last year. GM’s other brands, including Cadillac and GMC, also contributed to the surge.

The Ford Mustang Mach-E emerged as the best-selling non-Tesla EV in the U.S., although its future could be impacted by geopolitics. The vehicle is assembled in Mexico, and is now subject to Trump’s 25% tariff on imported vehicles, which may lead to price increases in the coming months.

Tariffs Add Further Complexity

President Donald Trump’s renewed trade war, marked by steep tariffs on imports, is reshaping the competitive landscape of the U.S. auto industry. While Tesla’s U.S. production in California and Texas insulates it somewhat from direct impact, the company is not immune to the global fallout.

China, retaliating against U.S. tariffs, has imposed significant levies on American goods. As a result, Tesla has halted orders for the Model S and Model X in China—luxury vehicles produced exclusively in the United States—cutting off a key international market.

Outlook Remains Mixed

Although Tesla remains the EV leader in unit sales, its relative decline signals a maturing market where competition is intensifying and consumer loyalty is no longer guaranteed.

Industry watchers say Tesla will need to refresh its product line, navigate political controversies, and rethink its pricing strategy if it hopes to defend its leadership position.