Cox Automotive reports that electric vehicle (EV) sales in the U.S. reached a record 1.3 million units in 2024, a 7.3% increase compared to 2023. The fourth quarter alone saw a 15.2% year-over-year rise in sales, highlighting strong demand driven by automaker incentives, competitive lease deals, and government programs. Despite Tesla's dominance in the EV market with the Model Y and Model 3 accounting for over 40% of total EV sales, the company experienced a year-over-year decline of over 37,000 units. In contrast, brands like General Motors and Honda significantly increased their sales, contributing to the market's growth.

The hypercompetitive U.S. EV market introduced 17 new models in 2024, with vehicles like the Ford Mustang Mach-E and Hyundai Ioniq 5 gaining traction alongside Tesla's lineup. The introduction of the Tesla Cybertruck also marked a notable milestone. Cox Automotive forecasts further growth in 2025, expecting EVs to comprise nearly 10% of total vehicle sales, driven by the launch of more than 15 new products, improved charging infrastructure, and sustained incentives. Although potential policy changes in Washington could slow this momentum, the market's expansion is expected to continue as buyers move quickly to take advantage of current benefits. (Source: Cox Automotive)