The ongoing dynamics centered around the Trump Administration’s trade policies have dominated the headlines in every sector of the economy for the past three months—and rightly so. It’s entirely understandable that tariff-related concerns are dominating OEMs’ attention these days; billions of dollars of added cost in the system will do that.
At the same time, the world keeps spinning, and other automotive issues continue to be important. The current state of the EV market, for example, is—if not on the front burner—at least still cooking on the stove. Not so long ago, EVs were the topic as OEMs navigated shifting EPA standards and looming production quotas, and Cloud Theory wrote reports commenting on the past, present, and future of that market sector.
So, we wanted to take a step back from the ever-present tariff turmoil and report out on what we’re seeing in the EV space. The change in presidents not only came with a more isolationist trade stance, but also with a radically different (and well documented) shift away from EVs. While Biden’s Inflation Reduction Act remains in place, many of its provisions are now under fire, which may result in the early elimination of tax credits for EVs and reduced funding for related infrastructure projects.
In the days between the election and Trump’s inauguration, EV sales spiked by 11% even as total vehicle sales declined by 2%. But since January 20, that shift has reversed, with (non-Tesla and Rivian) EV sales down 11% and total sales up by 3% versus the previous four months. Tesla deliveries, meanwhile, dropped by 13% in the first quarter of 2025, indicating a broader shift away from this sector.
While this is not a tariff-focused blog post, we cannot completely ignore today’s market conditions. In the tariff era — while consumers have accelerated their purchases of vehicles before anticipated price increases —EVs have not participated in that run-up at all. In total, the number of accelerated purchases between February 24 and now is estimated to be 460,000. Gas-powered vehicles have accounted for 427,000 of those earlier buys, hybrids for 19,000, and diesel vehicles and alt-fuel vehicles for the remainder.
-1.png?width=800&height=800&name=CT%20EV%20Blog%20PullAhead%20Sales%20May%202025%20(1)-1.png)
This is not to say that the EV story is written. Technological innovations and international pressures will continue to push this sector forward even in today’s political climate, and OEMs will need to stay the course over time. The recent surge in vehicle sales has left EVs in the slow lane—for now. But in an industry known for fast turns and long roads, today’s laggard can still be tomorrow’s leader.
