Auto Giants Forced To Cling To Gas Engines As EV Sales Crash Below Projections

While the electric vehicle transformation continues to charge ahead globally, the U.S. market is showing signs of a power struggle. EV sales in Q2 2025 actually dropped 6.3% compared to last year. Ouch. That’s not exactly the rocket-ship trajectory automakers were banking on.

The numbers tell a confusing story. Sure, total first-half sales hit a record 607,089 units—up a measly 1.5% year over year. But market share? Down from 8% to 7.4%. Not exactly the upheaval we were promised.

Tesla’s still king of the EV hill with 46% market share, but even they’re feeling the pain with U.S. sales down about 10%. Their Q1 2025 performance showed a significant decline with sales dropping nearly 9% from the previous year. The Tesla Model Y remains dominant with estimated 146,000 units sold in 2025 despite declining numbers. Meanwhile, the environment’s shifting beneath everyone’s feet. GM doubled their EV sales while Ford’s numbers dropped. Funny how corporate strategies can look so different when they’re chasing the same consumers.

Tesla dominates the electric landscape, but even the king is stumbling while competitors scramble for position in a market refusing to follow the script.

Some brands are just getting their feet wet. Honda and Acura added 14,000+ EVs thanks to their GM partnership. Stellantis finally showed up to the party with Dodge, Jeep, and Fiat offerings. Better late than never, I guess.

The real drama’s coming September 30th when federal tax credits phase out. Analysts expect a “rush” before the deadline vanishes. Those sweet government subsidies make a difference, apparently. Despite the upcoming changes, current federal incentives still cover 30% of costs for renewable energy projects through 2032.

Let’s be real—the global picture makes America look like it’s asleep at the wheel. China’s selling 5.5 million EVs in just six months, with half their car purchases now electric. Europe moved 2 million units. The U.S.? Not even keeping pace.

Gas engines aren’t dead yet. Not by a long shot. While compact crossovers like the Ioniq 5 and Equinox EV seem to be finding their groove, many Americans aren’t ready to plug in. Economic pressures, disappearing incentives, and old habits die hard.

For auto giants, the electric dream seems further away than their glossy presentations suggested.