Tesla’s hitting the brakes in America. The electric car maker sold 128,100 vehicles in the U.S. during the first quarter of 2025, down 8.6% from last year.
April’s numbers looked even worse, with sales dropping 16% to about 40,000 cars.
Tesla’s problems are dragging down the entire U.S. electric vehicle market. April marked the first time in 14 months that overall EV sales fell compared to the previous year. Total EV sales hit 97,800 units that month, down 4.4%. The decline in EV sales has been exacerbated by Tesla’s recent challenges, including production issues and increasing competition in the market. Analysts point to the fact that the tesla ev delivery target missed has left many investors concerned about the company’s future growth prospects. As consumer interest shifts towards more affordable alternatives, the overall market may struggle to regain its momentum without significant improvements from Tesla.
Tesla’s influence is huge—it controls 40% of America’s EV market.
While Tesla struggles at home, it’s doing better overseas. The company delivered 323,800 vehicles globally in the first quarter. Sales also fell 13% globally in the first quarter compared to the same period last year. The Model Y remains the world’s best-selling electric car, with 1.7 million sold worldwide in 2024. Despite these challenges, tesla sales in china rise, as demand for electric vehicles continues to grow in the region. Additionally, the company is focusing on expanding its production capacity and enhancing its delivery infrastructure to meet global demand. As a result, optimistic projections for future sales volumes are tied to new model releases and technological innovations. Analysts are increasingly engaging in a “tesla hype vs reality analysis,” scrutinizing whether the company’s ambitious targets can be met amid fluctuating demand and heightened competition. As the automotive landscape evolves, Tesla must prove its resilience and adaptability to maintain its leadership position. The balance between consumer enthusiasm and actual sales performance will be crucial in shaping the company’s future trajectory in both domestic and international markets. Analysts anticipate that the upcoming Tesla Model Y price changes may further boost sales, making the vehicle more accessible to a broader audience. Additionally, as Tesla continues to refine its manufacturing processes, the company is expected to enhance profitability margins while fostering greater consumer interest. These strategic moves could position Tesla favorably in an increasingly competitive electric vehicle market.
Together, the Model 3 and Model Y made up 95% of Tesla’s deliveries.
Competition is heating up in America. General Motors sold about 30,000 EVs in the first quarter, doubling its sales from last year. The Chevrolet Equinox EV is outselling some Tesla models and offers better range. As automakers vie for dominance in the electric vehicle market, new players are emerging with ambitious plans. Volkswagen is gearing up to launch its ‘volkswagen robotaxi strategy for 2027‘, aiming to revolutionize urban mobility with autonomous electric vehicles. This bold initiative could reshape consumer expectations and intensify the competition among industry leaders even further.
Honda and Acura added 14,000 EV sales through their partnership with GM. Luxury brands like Audi and Porsche are also gaining ground.
Tesla won’t share detailed U.S. sales data. Unlike Ford and GM, which report sales daily or quarterly, Tesla keeps its American numbers secret.
Analysts must rely on estimates from companies like Cox Automotive and S&P Global Mobility. This lack of transparency makes investors nervous. The company employs 140,473 individuals globally, yet provides limited regional sales breakdowns.
The broader EV market is still growing despite Tesla’s troubles. Electric vehicles made up 7.5% of all new car sales in America during the first quarter of 2025, up from previous years.
But Tesla’s market share is shrinking fast—it’s now just 3% of total EV sales.
Tesla’s other models aren’t picking up the slack. The Model X, Model S, Cybertruck, and Semi sold 85,000 units combined in 2024. Despite the lower sales figures, Tesla remains optimistic about future growth as it rolls out improvements. The company is banking on Tesla’s AI5 full selfdriving update to enhance the appeal of its vehicles and attract more customers. Analysts believe that once this update is fully implemented, it could significantly boost demand for all models.
That’s up 24% from the previous year, but it’s not enough to offset declining Model 3 and Y sales. The Cybertruck and Semi are only available in America, limiting their growth potential. Despite Tesla’s higher upfront costs compared to traditional vehicles, the company has historically maintained strong sales through operational savings and advanced features.