Data compiled by the research company shows that even if the overall market for electric vehicles grows, Tesla's sales in the US fell nearly 9% in the first three months of the year.
Research firm Cox Automotive said in a report that car buyers have moved to models such as General Motors' Chevrolet Equinox electric vehicles.
All U.S. electric vehicle sales are much faster than the overall car market and much faster than the flat car market, according to around 300,000 cars and lightweight trucks, up 11% in the first quarter. According to Cox, electricity accounted for roughly 8% of new domestic car sales, but this has been a slight increase since 2024.
“Despite many obstacles, and despite what you can read elsewhere, electric vehicle sales continue to grow at a healthy pace in the US market,” the company said.
According to Cox, Tesla, whose CEO is Elon Musk, sells far more electric vehicles than any other car manufacturer, and far more electric vehicles than any other car manufacturer. However, its share fell from 51% the previous year.
Tesla's decline in US sales reflects a global slump. The company said this month that delivery fell 13% to 337,000 vehicles during the quarter in all markets.
Analysts believe it has declined to the aging choices of Tesla's models. The latest CyberTruck has poor sales. Increased competition. And Musk's embrace of President Trump and right-wing politics led to protests at Tesla dealers, alienating many buyers. Democrats and independents are more likely to buy electric cars than Republicans.
Moreover, cybertruck sales are not withstanding the predictions made by Musk. Tesla sold 6,400 cybertrucks in the quarter. This was more than double, when the company was still increasing production, but only half the last three months of 2024.
Traditional carmakers have been slow to offer electric vehicles that can compete with Tesla in technology and design but are catching up. GM sold 10,300 sets in the quarter. The vehicle was not available a year ago. GM brands, including Cadillac and GMC, accounted for 11% of the electric vehicle market during the quarter, up from 6% in the previous year.
According to Cox figures, the Ford Mustang Mach-E was a bestselling electric car that wasn't Tesla. However, sales of the electric mustangs could suffer in the coming months. Made in Mexico, it is currently subject to a 25% tariff on Trump's imported cars. That could force Ford to ultimately raise the price of the car.
Trump's trade war is expected to affect Tesla as he manufactures all cars sold in the US at its California and Texas factories. But it still hurts. Tesla has stopped accepting orders from Chinese customers for the Model S and Model X, luxury cars that the company only does in California after China levied a major tax on US imports in retaliation for Trump's tariffs.
Claire Fu contributed the report.
