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Tesla’s Model Y and Model 3 Lead U.S. EV Sales Despite Decline

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Tesla’s electric vehicles, the Model Y and Model 3, dominated U.S. sales in the second quarter of 2025, despite a notable downturn in the broader electric vehicle (EV) market. According to data from Cox Automotive, the Model Y sold an impressive 86,120 units, while the Model 3 followed with 48,803 units sold. Together, these two vehicles accounted for a substantial 43% of all EVs sold in the United States during this period.

Market Challenges and Tesla’s Resilience

Tesla’s performance in Q2 is particularly significant given the challenges faced earlier in the year. The company experienced a temporary pause in Model Y deliveries in the first quarter as it transitioned to a new production line for this model. Additionally, the company encountered disruptions at its retail locations due to protests and vandalism linked to political backlash against CEO Elon Musk. Despite these hurdles, the Model Y and Model 3 outsold the next eight competing EV models combined.

The overall EV market in the U.S. saw a decline of 6.3% year-over-year, with quarterly sales totaling 310,839 units. This marked only the third decline in year-over-year EV sales, although sales did increase by 4.9% compared to the first quarter, reaching a record 607,089 units in the first half of 2025. Analysts anticipate a rebound in Q3 as consumers rush to take advantage of federal EV tax credits, which are set to expire on October 1, 2025.

Competitive Landscape and Market Share

While Tesla maintains a commanding lead in the EV market, traditional automakers are gaining momentum. General Motors doubled its EV sales in the first half of 2025, surpassing 78,000 units sold and capturing a 12.9% share of the market. Chevrolet emerged as the second-best-selling EV brand, allowing GM to outpace competitors such as Ford and Hyundai.

Despite a 12% drop in revenue in Q2, which followed a nearly 9% decline in the first quarter, Tesla’s market share remains strong at 44.7%. The company continues to be the most recognized name in electric vehicles, with incentives averaging 14.8% of transaction prices—approximately $8,500 per vehicle—helping to sustain consumer interest. As government support for new EV purchases diminishes, the used EV market is also expanding, with over 100,000 used EVs sold in Q2.

As the EV landscape evolves, Tesla’s ability to navigate market challenges while maintaining robust sales figures underscores its position as a leader in the electric vehicle sector.

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