U.S. EV Sales Hit 1.27 Million in 2025, Second-Highest on Record

In 2025, U.S. sales of battery electric vehicles (BEVs) reached 1.27 million units, marking the second-best year on record—just slightly below the record high of 1.3 million set in 2024. Despite steady growth throughout most of the year, BEV sales plummeted by 36% in the fourth quarter to approximately 234,000 units, following the expiration of the $7,500 federal tax credit at the end of Q3. Nevertheless, several premium models bucked the trend, with year-over-year sales increases for the Cadillac Escalade IQ, Porsche Taycan, Tesla Model Y, and multiple new Mercedes-Benz and Volvo EVs. Analysts noted that these models cater to customers less reliant on subsidies and more focused on product quality and performance. With over 30 new all-electric models slated for launch in 2026, competition in the market is expected to shift further toward product excellence rather than policy-driven incentives.