1 in 5 autos sold in 2024 was a hybrid or EV

The news: US EV sales surged 15.2% YoY in Q4, reaching a record 365,824 units, according to Cox Automotive’s Kelley Blue Book.

• The sales boost was partly driven by consumers rushing to purchase vehicles before the incoming Trump administration implements tariffs and rolls back EV tax credits.
• This strong year-end performance brought total EV and hybrid sales for 2024 to over 3.2 million, accounting for 1 in 5 US vehicles sold—the first time green vehicles achieved this milestone—according to Motor Intelligence.

Running out of gas: EV and hybrid vehicles’ momentum is likely to stall this year. President-elect Donald Trump and Republican leaders have criticized the federal tax credits of up to $7,500 and vowed to eliminate them and other support for EVs.

• That said, it isn’t clear how far those efforts will go given the slim House majority that will make it difficult to pass any legislation and the growing influence of Tesla CEO Elon Musk on the administration.
• Even with tax incentives, some EV manufacturers face challenges amid rising competition. Polestar fell short of its 2024 sales targets and now projects positive free cash flow by 2027—two years later than its previous forecast of late 2025. Tesla’s deliveries declined YoY in 2024 even as EV demand rose. The company recently began offering discounts on Cybertruck vehicles.

Our take: It’s clear the incoming administration plans to shift away from incentivizing consumers to purchase environmentally friendly vehicles. However, this approach may only delay the inevitable. The global momentum toward EVs given their lower operating costs provides compelling reasons for both consumers and automakers to move away from gas-powered vehicles.

Go further: For more on what the Trump administration will mean for the EV industry and beyond, read our election report. You can also check out our Data Drop: 5 Charts on the State of the Auto Industry.

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