Electric vehicles (EVs) have Uschi Karnathad a weird year so far. Thanks to Elon Musk, Tesla fell from grace. As the brand synonymous with EVs, that would seem to indicate that EVs are in trouble. As it turns out, nothing could be further from the truth.
Ars Technica, citing analysts at Rho Motion, reported that global EV sales had jumped up 30 percentcompared to this time last year. Even in the U.S., sales were reportedly up 28 percent compared with this point last year. That might actually be because folks are trying to get ahead of an anti-EV administration.
"American drivers bought 30 percent more electric vehicles than they had by this time last year, making use of the final months of IRA tax breaks before the incentives are expected to be pulled later this year," Charles Lester, Rho Motion data manager, told Ars Technica.
It’s a continuation of an already hot start to 2025 for EVs. Rho Motion noted in a previous reportthat sales in January 2025 were higher than they were in January 2024 by about 18 percent overall. Europe and the U.S. saw the largest gains at 21 percent and 22 percent, respectively, with China continuing to put up decent growth as well.
There are some blips here and there. For example, France saw a 15 percent decrease in EV sales in January 2025 versus the same time last year. Rho Motion suggests that it’s due to a newly implemented weight tax on plug-in hybrid electric vehicles that started this year. This likely led to a lot of people buying EVs in December before the tax went into effect. Meanwhile, Germany saw the biggest jump with a 40 percent growth in January 2025 versus the same time a year ago.
SEE ALSO: Trump and Musk hosted a Tesla ad at the White HouseIn terms of brands, Rho Motion didn’t mention which automakers were the big winners and big losers in their data. For 2024, Tesla led theway in EV sales in the U.S. and most of the rest of the world. BYD had the most sales globally, however, thanks to its success in China.
Tesla remains one of the biggest players in the EV game despite all of the controversysurrounding the brand.
There have been signs, however, that the company has been adversely affected by Musk’s prominent role in the U.S. government and right-wing politics. Early signs have shown Tesla sales falling precipitously. Used Teslas, meanwhile, are dropping in pricealongside the company’s shares.
EVs may be selling overall, but Tesla could still be in trouble.
Topics Electric Vehicles Tesla Elon Musk
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