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U.S. Auto Sales Edge Higher in 2025 as EV Share Plunges, BYD Tops Tesla Globally

Analysts warn of a 2026 EV slowdown following subsidy cuts.

Overview

  • U.S. new-vehicle sales rose about 2% to roughly 16 million, driven by trucks, SUVs and hybrids as many buyers still faced affordability hurdles.
  • EV retail share fell to an estimated 6.6% in December after the $7,500 federal credit ended, with a third‑quarter rush giving way to a sharp fourth‑quarter drop.
  • Tesla delivered about 1.63–1.64 million vehicles in 2025, while BYD sold roughly 2.26 million battery‑electric cars to become the world’s largest BEV seller.
  • Legacy automakers scaled back EV plans and recorded large charges — Ford about $19.5 billion and GM about $1.6 billion — while shifting capacity toward gas and hybrid models.
  • Detroit executives are slated to testify on vehicle affordability before the Senate Commerce Committee on January 14 as forecasts point to slower EV growth in 2026.