Tesla U.S. Sales Drop 9% as GM and Ford Gain Ground in Growing EV Market

Tesla’s dominance in the U.S. electric vehicle (EV) market is slipping, with sales declining nearly 9% in the first quarter of 2025, even as the overall EV market expanded by 11%, according to a recent report by Cox Automotive. The research firm’s data reveals a shifting landscape where traditional automakers like General Motors (GM) and فورد are capturing market share with competitive new models, while Tesla grapples with aging designs, increased competition, and political backlash tied to its CEO, إيلون ماسك, reports the نيويورك تايمز.

Tesla’s Market Share Slides Amid Growing Competition

Tesla, long the frontrunner in the U.S. EV market, saw its share drop from 51% a year ago to 44% in the first quarter of 2025, Cox Automotive reported. The company delivered 337,000 vehicles globally during the period, a 13% decline year-over-year, reflecting a broader slump that mirrors its U.S. performance. Analysts point to several factors driving this decline: an aging model lineup, underwhelming sales of the new سايبرتك سايبرتك, and intensifying competition from legacy automakers.

GM’s Chevrolet Equinox EV, starting at $35,000 and offering over 300 miles of range, has emerged as a strong contender. Cox Automotive noted that GM sold 10,300 Equinoxes in the quarter, contributing to its EV market share rising to 11%—up from 6% a year earlier.

“Car buyers are moving away from Teslas and toward models like General Motors’ Chevrolet Equinox electric vehicle,” the Cox report stated, highlighting the appeal of GM’s pricing and range.

Ford also made significant strides, with the موستانج ماش-إي becoming the best-selling non-Tesla EV in the U.S. during the quarter. However, Ford faces challenges as the Mach-E, manufactured in المكسيك, may soon be subject to a 25% tariff on imported cars proposed by the Trump administration. Such a tariff could force Ford to raise prices, potentially dampening its momentum.

Overall EV Sales Rise Despite Tesla’s Struggles

The U.S. EV market grew to approximately 300,000 cars and light trucks sold in the first quarter of 2025, an 11% increase year-over-year, Cox Automotive found. This growth outpaced the broader auto market, which remained flat. About 8% of new domestic car sales were electric, a slight uptick from 2024.

“Despite many obstacles—and what you may read elsewhere—electric vehicle sales continue to grow at a healthy pace in the U.S. market,” the firm emphasized, countering narratives of a stagnating EV sector.

This growth reflects a broader acceptance of EVs, driven by improved infrastructure, greater model variety, and competitive pricing. Traditional automakers, once slow to challenge Tesla on technology and design, have begun to catch up. GM’s expanded lineup, including Cadillac and GMC brands, has bolstered its position, while Ford’s focus on performance-oriented EVs like the Mach-E resonates with buyers seeking alternatives to Tesla’s offerings.

Cybertruck Sales Disappoint as Production Challenges Persist

Tesla’s much-hyped Cybertruck has failed to meet expectations, further contributing to the company’s woes. The angular, stainless-steel pickup sold 6,400 units in the first quarter of 2025—more than double the 2,800 sold a year earlier but less than half the 14,000 sold in the last three months of 2024. Production ramp-up issues and waning consumer interest have hindered the Cybertruck’s performance, despite Elon Musk’s ambitious projections.

The Cybertruck’s polarizing design and high price point—starting at around $60,000—may be deterring buyers in a segment where competitors like the Ford F-150 Lightning and ريفيان R1T offer more conventional appeal. Tesla’s focus on the Cybertruck has also drawn resources away from refreshing its core models, such as the Model S and الموديل X, which analysts say are losing their edge in the luxury EV space.

Political Backlash and Trade Policies Add Pressure

Elon Musk’s alignment with President Trump and right-wing politics has sparked protests at Tesla dealerships, alienating a key demographic. “Democrats and independents are more likely to buy electric vehicles than Republicans,” the Cox report noted, underscoring the impact of Musk’s political stance on Tesla’s customer base. Protests have intensified since Musk took a prominent role in the Trump administration.

Trump’s trade policies pose another challenge. A proposed 25% tariff on imported vehicles could hit Ford’s Mach-E hard, but Tesla may also feel the ripple effects. While Tesla manufactures its U.S.-sold vehicles in كاليفورنيا و تكساس, it recently halted orders from Chinese customers for its Model S and Model X after الصين imposed retaliatory tariffs on U.S. imports. This move limits Tesla’s production flexibility, as the company relies on its Shanghai factory to supply these luxury models to global markets.

Industry Context: A Maturing EV Market Faces New Hurdles

The U.S. EV market is at a pivotal moment. Charging infrastructure has improved significantly, with over 183,000 public charging ports available nationwide as of late 2024, according to the U.S. Department of Energy. Battery range anxiety is diminishing, with models like the Equinox EV offering over 300 miles per charge—equivalent to 483 kilometers for international readers. Yet, regulatory uncertainty under the Trump administration, including potential cuts to EV tax credits, could slow adoption.

Competition is also heating up globally. Chinese automakers like BYD, which overtook Tesla as the world’s largest EV producer in 2024, are expanding into Europe and Latin America but face steep tariffs in the U.S. This dynamic benefits domestic manufacturers like GM and Ford in the short term, though Tesla’s reliance on U.S. production may shield it from some trade-related pressures.

EVXL’s Take: Tesla Must Innovate to Regain Momentum

Tesla’s 9% sales drop signals a critical juncture for the EV pioneer. The company’s failure to refresh its aging lineup—outside of the Cybertruck—has left it vulnerable to competitors offering better value and fresher designs. GM’s Equinox EV, at $35,000 with a 300-mile range, undercuts Tesla’s cheapest model, the Model 3, which starts at $42,000 after recent price adjustments. Ford’s Mach-E, meanwhile, appeals to performance enthusiasts.

The Cybertruck’s lackluster sales highlight a broader issue: Tesla’s innovation pipeline has slowed. While Musk’s focus on autonomous driving and AI is forward-thinking, it risks neglecting the immediate need for competitive, consumer-friendly vehicles. Political backlash tied to Musk’s public persona adds another layer of complexity, potentially driving away environmentally conscious buyers who form a core part of the EV market.

On the regulatory front, Trump’s tariffs and potential policy shifts could reshape the competitive landscape. Tesla’s domestic production may offer some protection, but the broader EV market’s growth could stall if federal incentives are slashed. For now, GM and Ford are capitalizing on Tesla’s missteps, but the race for EV supremacy remains wide open. Tesla must act swiftly—whether through new models, improved pricing, or a strategic pivot—to reclaim its lead.