Tesla controls 59% of US EV market, highest share since 2023

Tesla grabbed 59% of all US electric vehicle sales in Q4 2025, a jaw-dropping leap from 41% in Q3 2025 and its strongest quarterly performance since 2023. The data, analyzed from Cox Automotive figures by CareEdge, paints a picture of one company tightening its grip on a market that is, somewhat ironically, getting smaller. Dominating a contracting market Total EV sales in January 2026 came in at roughly 66,000 units, down 29.9% year-over-year. EVs accounted for only about 5.8% to 6% of total new vehicle sales in Q2 2026. In January 2026, Tesla’s market share climbed to 60.5%, even as its own sales dropped 17% month-over-month. For the full year 2026, Tesla is estimated to account for roughly 45% of all new US EV sales, down from 49% in 2024. In Q2 2026, Tesla held 50.5% of the market on a quarterly basis. The Model Y and Model 3 continue to do the heavy lifting. These two vehicles occupy the sweet spot of pricing and brand recognition that competitors have struggled to match. Why rivals are losing ground The expiration and reduction of certain federal EV incentives played a significant role in reshaping the competitive landscape. Higher-priced models from traditional manufacturers...