New Research from EV.com Shows Rising Consumer Demand for Electric Cars

Q1 2025 EV sales data clearly shows that customer interest in electric vehicles keeps growing, despite Tesla’s ongoing struggles and recent U.S. policy changes that removed several former EV benefits. So, what’s behind this continued rise in EV demand? Our team decided to explore the key reasons why the EV market continues to rise and whether buying an EV now is still a smart move.

Overall, the U.S. EV market grew by 11.4% compared to the same quarter last year. This growth came as a surprise to many EV experts, especially given recent political challenges. Even more impressive is that the market expanded despite Tesla, the top EV seller, experiencing a 9% drop in sales, marking one of its sharpest declines in the past three years.

This growth was made possible thanks to strong performances from other automakers. Porsche led the way with an astounding 249% increase in EV sales, followed by Toyota with 196%. Subaru and Volvo also showed remarkable progress, each recording a 173% rise.

In terms of total units sold, Tesla still held the top spot, accounting for nearly half of all EV sales despite the decline. General Motors followed in second with over 30,000 EVs sold, and Ford came in third with 22,550 units.

If you’re curious to learn more about EV performance in the first quarter, check out our full Q1 EV sales report.

2025 started with a total upswing in the EV market. So, what caused this positive shift? Despite facing numerous barriers, certain factors had a stronger impact. Our team investigated the situation, and, in this section, we’ll share what we believe are the most important contributors to the EV market’s growth during the first months of the year.

• Access to the Tesla Supercharger Network – This became the most influential driver of EV sales in the U.S. in 2025. Nearly every EV owner can now use the country’s largest charging network, making EV ownership more convenient. Several automakers have even switched from CCS to NACS ports, simplifying the process even further.
• Price Drops – Several EV manufacturers reduced prices on key models between late 2024 and early 2025. One standout is the Chevrolet Equinox EV, which saw a nearly $10,000 price cut, making it among the most affordable EVs with 300+ miles of range. Combined with available incentives, this makes some EVs more affordable than similar gas-powered cars.
• New EVs in Nearly Every Segment – Between the end of 2024 and start of 2025, automakers introduced and began producing many new electric vehicles across multiple categories and price points. Whether it’s Dodge’s electric muscle car, Cadillac’s new electric SUVs, or Volkswagen’s electric bus, the variety is expanding rapidly, appealing to a wider audience.
• Global Automakers Invest in U.S. EV Production – A growing number of non-American EV manufacturers are building production facilities in the U.S., helping to cut logistics expenses and avoid new tariffs. This trend underscores their growing interest in the American EV market. One notable example is Hyundai Motor Group, which opened its HMGMA plant in late 2024 to produce the IONIQ 5 and upcoming IONIQ 9.
• Next-Gen Tech Makes EVs Smarter and More Versatile – With the adoption of advanced systems such as 800V electrical architecture, vehicle-to-load (V2L) or even vehicle-to-everything (V2X), and state-of-the-art driver assistance tech, EVs are becoming more than just cars. They now offer superior charging capabilities, improved safety and range, and added versatility, enabling them to serve as mobile energy sources and integrated smart tools in daily life.

The growth of the U.S. EV market in early 2025 is no fleeting trend, it’s the result of fundamental advancements that have collectively addressed longstanding consumer concerns. The market’s trajectory suggests that skepticism about EVs is giving way to widespread acceptance, driven by tangible improvements rather than speculation.

While challenges remain, the first quarter of 2025 has proven that the transition to electric mobility is accelerating on its own merits. With this foundation in place, what can we expect in the coming months? Let’s explore the key forecasts for the upcoming quarter in the U.S. EV sector.

The EV market stands at a crucial point: will demand keep rising or start slowing down? As seen in Q1, growth was driven by several strong factors that pushed the entire market upward. However, some negative influences are also gaining strength. EV.com will take a closer look at what’s ahead for the industry and whether now is the right moment for you to invest in an electric vehicle.

Experts believe the second half of 2025 will be a turbulent period for EV sales in the U.S., despite ongoing product launches and financial incentives. New auto tariffs, if enacted, could significantly affect automakers by increasing the cost of key materials like steel and aluminum, which are essential for EV production. At the same time, the situation around incentives is worsening, with federal tax credit eligibility becoming more restrictive and many EV incentive programs shrinking across the country.

Taking all current trends into account, we predict that Q2 2025 will bring continued growth in EV sales across the U.S., though at a slightly slower pace than in Q1. Based on our estimates, the market is expected to grow by approximately 7–9% compared to the same period last year.

An 11.4% growth in the U.S. EV market during Q1 2025 shows that electric vehicles continue to gain consumer favor—even as Tesla sales declined and federal incentives became harder to qualify for. Factors such as broader charging access, price reductions on top models, and the launch of exciting new EVs have significantly boosted their practicality and appeal.

That brings us to the central question of this article: is now a good time to buy an EV? Our answer is a clear yes. Based on our projections, the EV market is expected to keep growing, and with many incentives, both federal and local, still available, purchasing an EV now remains a smart and timely investment.

Agree with our take? Browse the best EV deals near you and find the one that fits your lifestyle. Meanwhile, EV.com will keep tracking the latest EV market trends.