Courtesy of Tesla, Inc.
Tesla led global electric vehicle (EV) sales in the first quarter of 2025, according to data from market tracker EV Volumes (via @MarioNawfal). The automaker secured both top spots worldwide, with the Model Y remaining the best-selling EV at 201,773 units sold and a 7.4% market share. It was trailed by the Model 3, which sold 118,964 units and accounted for 4.3% of the global EV market.
Despite leading global rankings, Tesla’s overall performance in the quarter reflected some pressure. The company’s total vehicle deliveries dropped 13% year-over-year, from around 386,810 to 336,681 units. This was in a quarter that saw global EV deliveries surge some 38% year-over‑year.
In the U.S. alone, EV sales climbed 11% year-over-year. However, Tesla’s U.S. sales slipped approximately 9% (at around 128,100 units) amid increasing competition from rivals like BYD, Hyundai, and legacy automakers.
Things weren’t much better in Europe, where Tesla sales in key markets dropped every month of the quarter and kept dipping well into May. From January to April, Tesla registrations in the EU fell by nearly 39% year-over-year.
Tesla’s market share declined as competitors expanded aggressively with lower-cost models, particularly in Europe and China. While the company maintains a (slowly diminishing) lead in North America, its shrinking share in other regions raises questions about its ability to sustain momentum, especially as more affordable and localized EVs continue to gain traction. Could it be time for Elon Musk to put the fabled sub-$25,000 Tesla back on the table?
Musk recently teased a Robotaxi launch for June 22, but given Tesla’s history of ambitious timelines and regulatory challenges, expectations remain measured. Full Self-Driving (FSD) testing is ongoing, but the system remains classified as Level 2, with supervised use still required.
For now, Tesla continues to set the pace in EV sales — but the road ahead looks more competitive than ever.
