US EV Sales Rise in February While Tesla Continues to Lose Market Share

US EV sales hit a February record with 95,692 units sold. Tesla’s market share shrinks as BMW, Rivian, and Hyundai-Kia post gains. Analysts predict rising competition.

The U.S. electric vehicle market continues to show resilience amid political turbulence and looming tariff threats. In February 2025, EV sales hit a new monthly record with 95,692 units sold — a 10.5% year-over-year increase. Despite a 5.9% month-over-month dip, demand for battery-powered models remains strong.

However, the balance of power among automakers is shifting. Tesla, still leading, is gradually losing ground. Sales dropped by 10% compared to January: the Model 3 fell 17.5%, Cybertruck plunged 32.5%, and Model Y declined 3.1% but remained the best-selling EV of the month. Tesla now holds nearly 40% of the U.S. EV market — a share that's slowly shrinking.

Meanwhile, competitors are gaining momentum. BMW boosted EV sales by 21%, while Rivian surged 34%. Ford saw a 23% increase in electrified vehicle sales — including hybrids — while fully electric models like the F-150 Lightning and Mustang Mach-E posted a 15% year-over-year gain. Honda made a strong entry with nearly 3,000 Prologues and 1,500 Acura ZDXs sold. Hyundai and Kia set a February record, driven by steady demand for the IONIQ 5, IONIQ 6, and EV9.

Volkswagen also strengthened its position — the ID.4 became the third best-selling EV in the U.S. in January, with nearly 5,000 units sold. Price competition is heating up: the base Model 3 starts at $42,490, the Hyundai Ioniq 6 at $43,850, while the Chevrolet Equinox EV undercuts them at $34,995.

Yet Tesla faces challenges beyond competition. Elon Musk’s growing political involvement and close ties to Donald Trump’s administration have sparked protests and restrictions. In Canada, Tesla has been excluded from several incentive programs. Toronto removed Tesla from EV incentives for taxis and ride-sharing, while the Vancouver International Auto Show banned the company over safety concerns.

Still, it’s too early to count Tesla out. The company is rolling out updates for the Model Y, S, and X and plans to launch its Robotaxi service as early as summer. Competition is intensifying, but analysts believe this could ultimately drive the growth of the U.S. EV industry.

Source: insideevs.com