EV Sales Recently Shifted in a Way That Should Alarm Automakers Everywhere | Carscoops

      Sales of electric vehicles are declining despite ongoing incentives, with some brands performing well while others falter.

      A notable drop in EV registration data has been observed among various automakers. Tesla’s U.S. EV registrations decreased by 12 percent compared to the same month last year.

      During this time, Cadillac, Nissan, Honda, and Acura reported significant growth in EV sales.

      In the U.S., electric vehicle sales haven't just stabilized; they've actually fallen. After years of growth and aggressive expansion from manufacturers, new registration figures reveal that EV sales in May fell compared to the same month last year, specifically by 5.9 percent. This marks the second consecutive month of decline and has led to a decrease in EV market share.

      In total, there were 99,053 new electric vehicle registrations in the U.S. in May. While some brands continued to show growth, others experienced considerable losses. EVs constituted 7.1 percent of all light vehicle sales for the month, down slightly from 7.5 percent in May 2024.

      Elon Musk's company still leads in EV sales compared to any other manufacturer in the country. In May, 42,861 new Teslas were registered, significantly surpassing Chevrolet, which came second with 8,389 registrations. However, while Chevy's sales increased by 122 percent, Tesla's sales fell by 12 percent. This drop isn't surprising given the negative public sentiment towards Tesla this year, partly due to Musk’s controversial political engagement.

      Other prominent automakers also reported declines in EV registrations. Ford saw a 6 percent decrease to 6,710, while Hyundai's registrations fell significantly by 22 percent to 4,730. Rivian's registrations fell by 25 percent in May, and BMW experienced a 21 percent drop.

      Not all brands followed the downward trend; some showed strong growth, with Honda leading with a remarkable 266 percent increase. Acura’s increase of 2,911 percent is largely due to comparison with a much smaller sample. GMC's registrations rose by 111 percent, while Cadillac and Nissan posted gains of 33 percent and 29 percent, respectively.

      More Than Just Pricing

      According to Tom Libby, an analyst at S&P Global Mobility, these results come despite incentives aimed at bridging the price gap between EVs and internal combustion engine vehicles. He mentioned to Auto News, “The fact that EVs are not selling means they have other issues — the range, the charging infrastructure, and the product portfolio.”

      Earlier this year, EV sales surged as consumers expressed concern that President Donald Trump would soon eliminate the $7,500 federal EV tax credit. However, sales dipped in April and May. With the announcement that the program will end on October 1, it’s likely that buyers will rush to purchase eligible EVs before the rebate disappears.