As new EV sales stall, new share dynamics grow

From 2019 to 2020, Tesla sales figures commanded an impressive 80% of new EV market share. Since then, a proliferation of new entrants has been providing competitive products, particularly for the luxury class, and impacting Tesla's share, which dropped to the mid-60% range by 2023. 

In the first five months of 2025, Tesla's share fell to just 45%. Additionally, 81% of new EV retail registrations in January–May 2025. come from 10 OEM brands and the remaining 19% are spread across 27 other makes.  That’s a lot of brands competing for less than 10% of the new vehicle market.  Several key data points emerge from this analysis.

• Tesla's market share decline: Tesla's market share has dropped 8 percentage points from 2024 and 19 points from 2023.

• Chevrolet's surge: Chevrolet has made significant strides, climbing to a 7% market share — more than doubling its 2024 share of 3%. 

• Honda's emergence: Honda pops on the radar in 2025 with a 3% share, a remarkable increase from not breaking 0.1% in previous years.

• Diversity in the market: Nearly one in every five new EVs (19%) now comes from the 27 “Other” brands outside of the top 10, highlighting the growing and crowded competition.

One of the most intriguing developments in the US EV market is that the long-standing premium on electric vehicle prices compared to gasoline vehicles is disappearing. Recent analysis by S&P Global Mobility indicates that  average monthly payments for EVs are now comparable to or even lower than those of their gasoline counterparts. 

This shift toward more affordable EVs is essential in appealing to new customers and increasing adoption and market share. The expiration of the $7,500 federal rebate for EV purchases will exert additional pricing pressure, forcing OEMs and dealerships to move quickly now before the rebate expires and then develop pricing strategies for how EVs can remain competitive with ICE and hybrid fuel types.  

The EV market landscape is shifting. While new retail registrations show modest EV market growth, the stagnation in overall market share, coupled with the impending arrival of new models, means more competition for customer attention and consideration. 

EV sales trends are being reshaped not just by new product introductions but by broader pricing strategies and consumer expectations. Manufacturers will need to navigate an evolving pricing landscape to maintain competitiveness and appeal.

If pricing remains competitive despite the expiration of a federal rebate, OEMs and dealers will be challenged to differentiate EVs from ICE vehicles by highlighting conveniences and cost savings on fuel.

As Tesla’s market leader position faces continuous pressure from new entrants across luxury and mainstream classes, there are opportunities over the next few years for brands to conquer those owners when they return to market. 

To see a list of all the upcoming launches across EV and ICE, Download our 2025-2026 US Vehicle and Activity Guide