Tesla continues to dominate the electric vehicle market in the United States, with the Model Y and Model 3 maintaining their positions as the top-selling EVs during the second quarter of 2025. Despite a 6.3% year-over-year dip in overall EV sales, Tesla’s Model Y recorded 86,120 units sold, followed by the Model 3 at 48,803 units. Together, these two vehicles accounted for 43% of all EV sales in the country during Q2, according to data from Cox Automotive.
Tesla’s strong performance in Q2 is particularly significant given the challenges the company faced earlier in the year. Production disruptions and political backlash against CEO Elon Musk affected Tesla’s operations, yet the Model Y and Model 3 still outsold the next eight EVs combined. The second quarter marked only the third year-over-year decline in quarterly EV sales, totaling 310,839 units. Despite this, electric vehicle sales were up 4.9% from Q1 and reached a record 607,089 units in the first half of 2025.
Analysts anticipate a surge in EV sales in Q3 as buyers rush to qualify for federal tax credits before they expire on October 1. General Motors also saw significant growth in EV sales, doubling its volume in the first half of 2025 and boosting its market share to 12.9%. Chevrolet became the second-best-selling EV brand, surpassing Ford and Hyundai. Despite facing revenue declines in Q2 and Q1, Tesla maintained a commanding 44.7% market share in the electric vehicle sector.
Incentives for EV purchases reached record highs in Q2, averaging 14.8% of transaction prices or roughly $8,500 per vehicle. As government support phases out, the used EV market is gaining traction, with over 100,000 used EVs sold in the second quarter. The overall landscape of the EV market is evolving, with legacy automakers gaining ground but Tesla still holding a significant lead in sales and market share.
As the electric vehicle industry continues to grow and evolve, Tesla’s success in Q2 highlights its resilience and ability to maintain a dominant position in the market despite challenges. The future of EV sales remains promising, with increased competition and incentives driving growth and innovation in the industry.