Cox Automotive has released its latest outlook on the U.S. electric vehicle (EV) market, highlighting a year marked by sharp quarterly swings but relatively stable annual performance. As widely anticipated, EV sales fell significantly in Q4 2025 following record-breaking results in the third quarter. With several government-backed sales incentives ending at the start of October, purchases accelerated earlier in the year and contributed to the late-year contraction.
Despite the fourth-quarter downturn, total EV sales for calendar year 2025 were only modestly lower than the prior year. According to Kelley Blue Book estimates, U.S. EV sales in 2025 totaled just under 1.30 million units, a decline of roughly 2% compared to 2024. This made 2025 the second-best year on record for EV sales in the U.S. EVs accounted for 7.8% of total new-vehicle sales, slightly below the 8.1% share recorded in 2024.
Tesla continued to lead the EV market by a wide margin, accounting for nearly half of all EVs sold nationwide. In contrast, General Motors recorded substantial year-over-year growth in EV sales. GM sold more than 150,000 EVs in 2025, increasing 48% compared to the prior year and capturing roughly 13% of the U.S. EV market. Chevrolet and Cadillac were the primary contributors, supported by expanded model availability and improved market uptake.
Looking ahead, Cox Automotive projects that EV market share will remain near 8% in 2026. The outlook reflects expectations of new product introductions, gradual improvements in charging infrastructure, and continued growth in consumer familiarity with EV technology.
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