In a surprising twist for the EV market, used Tesla listings on Autotrader.com surged by 67% in March 2025 compared to the same period last year, according to Cox Automotive data 6. At the same time, new Tesla sales dropped nearly 9% year-over-year in Q1 2025, even as overall U.S. EV sales grew by 10.6% 16.
This divergence highlights a growing trend: Tesla owners are offloading their cars at record rates, while legacy automakers like General Motors and Hyundai are gaining market share with affordable, well-reviewed EVs.
Why Are So Many Tesla Owners Selling?
Several factors are driving the surge in used Teslas:
- Elon Musk’s Polarizing Politics: The growing backlash against Musk’s public statements and political activities has led some Tesla owners to ditch the brand 6.
- Declining Resale Values: Tesla’s aggressive price cuts over the past two years have eroded used car values, prompting owners to sell before depreciation worsens 6.
- Competition from Newer EVs: With more options from GM, Hyundai, and others, buyers are exploring alternatives with better features or lower prices 25.
Tesla’s New Sales Slowdown: A Market Shift?
While nearly 300,000 new EVs were sold in Q1 2025 (up 10.6% YoY), Tesla’s share of those sales fell significantly 1. The company delivered 336,681 vehicles globally, but U.S. sales dropped to 128,000 units, down from its 2023 peak of 173,000 16.
Analysts point to:
- Aging Model Lineup: The Model Y and Model 3 haven’t seen major updates, making them less competitive against newer rivals.
- Lack of Affordable Options: Tesla has delayed its 25,000compactcar,whileGMandHyundaiarerollingoutcheaperEVslikethe∗∗ChevyEquinoxEV(25,000compactcar,whileGMandHyundaiarerollingoutcheaperEVslikethe∗∗ChevyEquinoxEV(35,000)** and Hyundai IONIQ 5 (now with Tesla-style charging) 311.
GM and Hyundai Are Winning the EV Race—For Now
GM’s EV Surge: Affordable Models Drive Growth
General Motors saw a 94% jump in EV sales in Q1 2025, selling 31,887 electric vehicles—nearly double its 2024 numbers 23. Key drivers include:
- Chevy Equinox EV: Over 10,329 sold, making it GM’s best-selling EV 3.
- Chevy Blazer EV: Sales skyrocketed 931% after a rocky start 3.
- Cadillac’s New EVs: The Lyriq, Optiq, and Escalade IQ are helping Cadillac rebound in the luxury segment 2.
However, looming 25% tariffs on Mexican-made EVs (including the Equinox and Blazer) could derail GM’s momentum by raising prices 3.
Hyundai’s Record Sales & Charging Advantage
Hyundai posted its best-ever Q1 sales, with 203,554 vehicles sold (up 10% YoY) 911. Its EV strategy is paying off:
- IONIQ 5 sales jumped 26% (8,611 units), thanks to Tesla Supercharger compatibility 11.
- Hybrid sales surged 68%, showing strong demand for electrified options 9.
- New U.S. Factory: The $7.6B Georgia Metaplant will soon produce U.S.-made Hyundais, avoiding tariffs 11.
What’s Next for the EV Market?
Tariffs & Policy Uncertainty Loom Large
The Trump administration’s 25% tariffs on imported auto parts (effective April 2025) could:
- Increase EV prices, hurting affordability.
- Disrupt supply chains, especially for models like the Equinox EV and IONIQ 5 311.
Tesla’s Make-or-Break Moment
Tesla needs to:
- Refresh its lineup (an updated Model Y is coming soon).
- Regain consumer trust amid Musk’s controversies.
- Launch its $25K compact car to compete with cheaper rivals.
If Tesla doesn’t act fast, GM and Hyundai could overtake it in U.S. EV sales by 2026.
Final Verdict: A Changing of the Guard?
The EV market is at a crossroads:
✅ Tesla’s dominance is slipping as used sales spike and new demand slows.
✅ GM and Hyundai are rising fast, thanks to better pricing and features.
✅ Policy risks (tariffs, incentives) could reshape the market overnight.
Bottom Line: If you’re shopping for an EV, now might be the best time to buy—before tariffs push prices higher.
Subscribe to my whatsapp channel