U.S. electric and hybrid vehicle sales reach 20% milestone amid market competition

Sales of all-electric and hybrid vehicles made up 20% of new car and truck sales in the U.S. last year, marking a milestone for "green" vehicles but growing slower than expected. According to Motor Intelligence, over 3.2 million electrified vehicles were sold, including 1.9 million hybrids and 1.3 million all-electric models. Gas and diesel vehicles fell below 80% of sales for the first time. Tesla retained its position as the EV market leader, with a 49% share—down from 55% in 2023. The Tesla Model Y and Model 3 were the best-selling EVs. Hyundai, General Motors, Ford, and BMW followed with market shares of 9.3%, 8.7%, 7.5%, and 4.1%, respectively. The U.S. EV market remains competitive, with 24 of 68 EV models seeing year-over-year sales growth and 17 new models debuting in 2024. However, future growth may depend on policy changes under the incoming Trump administration, which could reduce EV incentives, including the $7,500 federal tax credit. Cox Automotive projects record-breaking EV sales in 2025, with EVs making up 10% of new vehicle sales and electrified vehicles, including hybrids, accounting for one in four vehicles sold.