Tesla’s grip on the electric vehicle market is loosening, yet the company’s dominance remains unmatched. The automaker’s U.S. EV market share dropped from 62.8% in 2020 to around 32% through Q3 2025. Despite this decline, Tesla still controls more than 40% of the market and outsells every competitor by a massive margin.
In Q2 2025, Tesla sold nearly 144,000 EVs, capturing 48.5% of U.S. EV sales. That’s more than four times what the closest competitor sold during the same period.
In Q3 2025, Tesla’s Model Y became the top-selling EV nationwide with over 114,000 units sold. The Model 3 ranked second with 53,000+ units sold. Together, these two vehicles accounted for more than 75% of Tesla’s quarterly sales volume. This concentration highlights how most EV models sold significantly fewer units across the entire industry. Globally, BYD has emerged as a major competitor with 2.6 million deliveries and a 19.9% worldwide market share through August 2025.
Other automakers are gaining ground, though. General Motors doubled its EV sales volume since Q2 2024, largely thanks to the Chevrolet Equinox‘s popularity. The Equinox now ranks third in EV sales behind Tesla’s two models. Tesla’s Superchargers deliver about 200 miles of range in just 15 minutes at peak performance, maintaining a critical advantage over competitors. The overall U.S. EV market share has expanded to 7.5% in Q1 2025, reflecting broader industry growth beyond Tesla’s traditional dominance. Most legacy automakers posted year-on-year gains exceeding 30% in Q3 2025, demonstrating accelerating competitive momentum across the industry.
Hyundai’s Ioniq 5 doubled its quarterly sales from Q2 to Q3 2025. Volkswagen also achieved more than double its year-ago EV sales levels in Q3 2025. September 2025 marked the strongest month of EV sales ever, with 14% penetration in the new market.
Still, the overall EV market remains small. Q3 2025 saw 438,000 EV sales, representing just 10.5% of total vehicle sales. Only 90 EV models registered sales across the entire market that quarter. Just nine models sold more than 10,000 units, with two being Teslas.
Tesla maintains several strategic advantages. The company’s Supercharger network includes 2,821 stations and 34,499 ports—over 50% of the nation’s charging infrastructure. Throughout 2025, Tesla opened its network to most other EV brands, giving Tesla an industry-wide advantage.
Tesla implemented price cuts in 2025 to maintain its competitive edge as rivals entered the market. While the company’s percentage share continues falling, its actual sales volume remains the highest in the industry. Tesla’s competitors are catching up, but they’ve got a long way to go before matching Tesla’s dominance in EV sales.