Did EV sales really slow in 2024? How to actually understand the numbers

Throughout 2024, headlines highlighted a purported slump in electric vehicle sales. Not even Tesla, the top-selling EV in the country, could “dodge the EV sales slowdown,” one declared. But that news could be easily misconstrued, and doesn’t quite tell the full picture of the growing industry, experts say—and of the record year EVs had.

“EV sales overall are incredibly strong,” says Albert Gore, director of the nonprofit Zero Emissions Transportation Association (ZETA). Though the numbers aren’t yet out for the fourth quarter of the year, Q3 was “recording setting” for both sales volume and market share, he noted.

Reports of an EV slowdown aren’t talking about the volume of vehicles sold, but the growth rate. For several years, EV sales saw 50% growth year over year. Now, it’s closer to 20%. That may look like sales are slumping, but they’re still increasing—just at a slower rate. The early adopters eager to buy EVs drove the early growth, and after that rush of enthusiasm, the industry is now working to attract mainstream buyers.

A 20% growth rate is “still a really compelling market for any manufacturer that wants to get into it,” Gore notes. He expects EV sales to keep growing, especially as more affordable options continue to become available: three of the top five most popular EVs on the market, he says, are under $45,000 before federal tax credits. That’s below the average transaction price for a new vehicle, which is closer to $48,000.

EV market share in 2024

In the U.S., battery electric vehicles currently account for nearly 10% of all new car sales. Add in plug-in hybrids, an increasingly popular option, and that market share jumps above 14%. That far surpasses earlier projections for where the industry would be by this point. Over a decade ago—when the Environmental Protection Agency finalized its first-ever greenhouse gas emissions standards for light-duty vehicles—experts assumed that, in the most ambitious scenario, EVs could reach 3% of new vehicle sales by 2025.

“It’s a reason for hope,” Gore says, that EV sales are already way past that estimate. “That [growth] spans three different administrations, and three different approaches to policy. So the proof of concept of a mass market electric vehicle—we’re now past that point.”

Global EV sales are also strong. From January to October 2024, EV sales reached about 13.5 million units worldwide; that’s a 23.% year-over-year increase. China has been dominating the global EV market, accounting for 69% of those sales; Chinese manufacturer BYD also ranked as the top seller, responsible for more than 3 million units (and a growth of 36.5% year-over-year).

EV sales in 2025

The news about EV sales during 2024 was also colored, at least in the U.S., by the political landscape, Gore says; the industry became a debate point on the presidential campaign trail. Though incoming president Donald Trump has said he will roll back support for electric vehicles, Gore is confident EV sales will keep growing.

Separate from ZETA’s analyses, market research groups like Cox Automotive are pointing to the potential for EV growth. One Cox Automotive EV adoption study found that currently, 45% of consumers who want to buy a vehicle in the next year say they’re considering an EV—but 79% of shoppers will be considering an electric vehicle between 2026 to 2028. By 2033, that’s estimated to hit 90%.

There’s many reasons behind that expected increase: EVs are cheaper to operate than internal combustion vehicles; their ranges and capabilities fit most drivers’ needs; and their prices are continuing to come down. They’re also “fun to drive,” Gore adds.

Car makers are also continuing to invest in EVs—a sign that they believe in the market’s potential. (Ford did, over the summer, cancel some planned electric SUVs in favor of focusing on hybrid models, and others have rethought their EV plans, but they aren’t abandoning the transition entirely.) Investments into EVs and EV battery manufacturing grew past $180 billion this year in the U.S. Globally, automakers and battery manufacturers have committed more than $1.2 trillion to the EV transition.

The potential repeal of the Inflation Reduction Act’s EV tax credits could impact EV adoption, Gore notes. But the landmark climate bill has already spurred large investments in the battery and minerals supply chains and domestic manufacturing. And that’s helping create jobs and revitalize small towns.

Keeping up that progress benefits everyone—and helps the U.S. remain competitive internationally. Gore doesn’t see that changing. And states are continuing to push boundaries, which then propel the entire industry forward. California, for example, has pursued strict standards for vehicle emissions, even aiming to ban the sale of gas-powered cars in the state by 2035.