EV Market Defies Political Turmoil
Despite political and economic challenges, EV sales in the U.S. keep rising. In the first two months of 2025, the market grew 28% year-over-year, according to Rho Motion. Plug-in hybrids and fully electric vehicles are both seeing growth.
China’s EV boom is also shaping global trends. The country sold 1.4 million EVs and PHEVs out of 2.4 million global sales in January and February.
Tesla Slips as Rivals Gain Ground
Tesla, once the dominant force, is losing market share. Sales are expected to drop in Q1 2025, following global trends. In China, Tesla’s February sales plunged nearly 50%. European markets, including Germany, France, and Italy, also saw sharp declines.
Meanwhile, competitors are thriving. Ford’s EV sales jumped 15% in February. Honda’s new Prologue and Acura ZDX models are gaining traction, with nearly 4,500 units sold. Hyundai, Kia, and Volkswagen are also reporting strong numbers. The VW ID.4 ranked as the third best-selling EV in the U.S. in January, right behind Tesla’s Model Y and Model 3.
Will Policy Shifts Slow EV Growth?
The Biden-era federal EV tax credit could soon disappear. The Trump administration is already rolling back clean vehicle incentives and threatening a 25% tariff on EV imports from Mexico. Many new EVs are built there, meaning prices could spike if tariffs take effect.
For now, buyers are taking advantage of current deals. Automakers are offering deep discounts to clear 2024 inventory, further driving demand. Volkswagen recently lifted a stop-sale on the ID.4 and aggressively moved old stock.
Global EV Momentum Continues
The EV surge isn’t just a U.S. phenomenon. Global sales rose 30% year-over-year. China leads the charge, with BEV sales up 46% and PHEVs up 22%. In Europe, BEVs grew 29%, while PHEVs saw minor gains.
The U.S. market is holding strong—for now. But will shifting policies and economic headwinds derail the momentum? Time will tell.
