Volkswagen’s ID.4 has staged an incredible comeback, skyrocketing to become the third best-selling EV in the U.S. in January 2025. The German automaker sold 4,979 units, marking a staggering 653% increase compared to just 646 units in the same month last year.
This surge follows a difficult 2024, where ID.4 sales plummeted 55% due to a stop-sale order that halted deliveries. With production back on track and aggressive pricing strategies in place, Volkswagen is regaining lost ground.
Unbeatable Lease Deals Drive Demand
One of the biggest reasons behind this massive growth? Incredible lease offers. Some buyers secured deals like:
- $149/month with $999 down for base models.
- As low as $87/month after stacking state incentives.
For many, these prices were too good to pass up, making the ID.4 one of the best EV lease bargains on the market. Some even considered getting a second lease for a family member. However, not all dealerships honored these deals, frustrating shoppers who were quoted much higher prices.
Production Rebound = Big Sales Growth
Last year’s production halt left Volkswagen with significant inventory shortages. Now, with manufacturing fully ramped up, the company is shipping out more vehicles to make up for lost time. While the percentage increase looks extreme, the reality is that Volkswagen is returning to normal sales levels rather than setting new records.
Is Tesla Losing Buyers to Volkswagen?
While Tesla’s Model Y and Model 3 still dominate, some buyers are moving away from the brand. Reasons include:
- Growing dissatisfaction with Tesla’s pricing and brand perception.
- Increased competition from other automakers offering better deals.
- The appeal of non-Tesla EVs with more traditional designs and features.
Some buyers even said they had considered Tesla but chose the ID.4 because of its affordability.
Can Volkswagen Keep Up the Momentum?
Experts warn that these aggressive deals won’t last forever. Once the discounts disappear, will the ID.4 still be as popular? For now, Volkswagen is riding high—but the real test comes when prices return to normal.
