EV sales are on the rise in the United States. Usually, that would be good news for EV giant Tesla. Not this time, though. Tesla sales are at a staggering low, and the EV brand is bleeding its market share just as other automakers swoop in. 

As Tesla sales plummet worldwide, other automakers are grabbing the American brand’s market share

The year 2025 has been an eventful one, especially for Tesla. The automaker’s sales are down 13% year over year, and controversial CEO Elon Musk has all but painted Tesla’s brand image into a corner. But like the proverbial vulture, other legacy and boutique EV brands are coming for Tesla’s market share. 

According to Cox Automotive, EV sales rose 11.4% in the first quarter of 2025 over the previous year. That’s almost 300,000 new electric vehicles roaming the streets as of the end of March. In addition to the sheer volume of new EV sales, the segment’s total share of the new car increased from 7.0% to 7.5%.

However, very little of that sales boom belongs to Tesla. Tesla’s Q1 2025 sales, around 128,000 EVs, mark a 26% decrease from its peak sales season in spring 2023. But where there are losers, there are winners. Most notably, Porsche and Toyota enjoyed a 249% and 196% increase in EV sales volume year over year, respectively. 

Still, Tesla isn’t alone. Mercedes-Benz recorded a 58% decline in EV sales from Q1 2024 to 2025. Rivian, one of Tesla’s closest domestic EV-only rivals, dropped 37% year over year. That said, there are explanations for Tesla’s lower performance in the current EV market.

For starters, Musk’s government initiatives and public antics have damaged the brand’s image. Hell, a cursory internet search shows instances of vandalism and even violence targeting Tesla and its interests. 
However, the much-anticipated Model Y update has left production of last year’s best-selling EV idle. Paired with the underperforming sales figures for the video game-esque Cybertruck, 2025 hasn’t been kind to Tesla.