- Electric vehicle sales decreased in the second quarter
- They’re likely to spike in the third quarter as the end of the federal EV tax credit approaches
Americans bought 6.3% fewer electric vehicles (EVs) in the second quarter of 2025 than they did in the first. But third-quarter EV sales are likely to spike as the end of the $7,500 federal EV tax credit approaches.
Kelley Blue Book parent company Cox Automotive reports that dealers sold 310,839 EVs between April and June, down from 331,853 in the same period a year ago.
GM Sales Accelerate, Tesla Sales Slow
- Tesla remains the EV sales king, but has seen a 21% drop this year
- General Motors, meanwhile, has more than doubled its EV sales
General Motors was the big winner of the second quarter. It sold more than 78,000 EVs in the first half of the year — more than double its performance from the first half of 2024.
Ironically, the second-best-selling EV GM builds is a Honda. Honda also had strong growth on the strength of Honda Prologue and Acura ZDX sales. Both cars are built by GM using mostly GM parts, but Honda designs.
Tesla remained the EV sales leader but is watching its lead erode. During the quarter, Tesla sales fell by more than 12% year-over-year, after falling 9% in the first quarter.
The EV pioneer’s share of total U.S. sales (3.4%) and share of the EV market (44.7%) have both declined year-to-date in 2025. Tesla sales now appear to have peaked in February of 2023. With more competition every month and continuing political controversy, the company may have little hope of returning to its once-dominant position in EV sales.
EV Tax Credit Disappearing in September
- A recently passed law means no more $7,500 EX tax credit after September
- That will likely trigger a sales rush and then a drop
The EV market will suffer a dramatic shock at the end of September, as the federal government’s $7,500 EV tax credit will sunset thanks to a new law.
Cox Automotive analysts expect a sales rush as the end gets near. “With government-backed incentives set to end in September and economic pressures mounting, the second half of the year will be a critical test of EV demand,” says senior analyst Stephanie Valdez Streaty. “Q3 will likely be a record, followed by a collapse in Q4, as the electric vehicle market adjusts to its new reality.”
The 10 Best-Selling EVs of Q2
| Rank | Model | Q2 Sales |
| 1 | Tesla Model Y | 86,120 |
| 2 | Tesla Model 3 | 48,803 |
| 3 | Chevrolet Equinox EV | 17,420 |
| 4 | Hyundai Ioniq 5 | 10,481 |
| 5 | Ford Mustang Mach-E | 10,178 |
| 6 | Nissan Ariya | 7,471 |
| 7 | Honda Prologue | 6,756 |
| 8 | Chevrolet Blazer EV | 6,549 |
| 9 | Rivian R1S | 6,146 |
| 10 | Ford F-150 Lightning | 5,842 |