US Electric Vehicle Sales Surge to Record 1.3 Million Units in 2024

In a remarkable turn of events, the U.S. electric vehicle (EV) market has hit a record high of 1.3 million units sold in 2024, despite a decline in Tesla sales. This impressive growth can be attributed to a combination of factors, including strong incentives, new models, and shifting consumer preferences.



The U.S. EV market has been on a steady upward trajectory, with sales benefiting from strong incentives from automakers, excellent lease deals, and federal and state incentive programs. These factors, coupled with the introduction of new and exciting EV models, have driven consumers to embrace electric vehicles in record numbers.

One of the key drivers of this growth has been the introduction of new models from established automakers. General Motors (GM) and Honda Motor Co., for instance, sold nearly 80,000 more EVs in 2024 than in 2023. Hyundai Motor Group and Ford Motor Company also notably increased their EV sales last year. These new models, such as the Honda Prologue and GM's Chevrolet Equinox EV and Cadillac Lyriq, have provided consumers with more choices and attracted new buyers to the EV market.

Despite the decline in Tesla sales, the overall EV market has continued to grow, with more than 2.5 million EVs sold in the past 48 months. In the latest analysis, sales in 2023 were revised upward to 1,212,758 units, a 49% gain from 2022. Sales in 2024 were higher by 7.3% and accounted for 8.1% of total sales, up from 7.8% share in 2023. While the rate of growth has slowed, volume continues to expand, with more than 700,000 EVs sold in the second half of 2024, accounting for 8.7% of total new-vehicle sales.

Cox Automotive expects further EV sales growth in 2025, with more than 15 new products scheduled to enter the market, improving charging infrastructure, and continued support from automakers. Sales of EVs are likely to account for close to 10% of total sales this year, according to the Cox Automotive Forecast.

In conclusion, the U.S. electric vehicle market has experienced remarkable growth in 2024, despite the decline in Tesla sales. Strong incentives, new models, and shifting consumer preferences have all contributed to this impressive milestone. As the market continues to evolve and expand, we can expect to see even more innovation and growth in the years to come.