- Tesla sold over 64,000 Model Y electric SUVs in Q1, according to Kelley Blue Book.
- The EV automaker sold over 52,00 Model 3 electric sedans.
- Tesla continues to outsell rivals despite major controversy involving CEO Elon Musk.
Tesla (NASDAQ: TSLA) had one of the most turbulent business quarters in the company's history in the first quarter of 2025. Shares dropped by 41.5% from January 2 to April 8, hitting a yearly low for the company at $221.86 a share.
Since then, Tesla's share price has rebounded in a major way, recovering to $356.86 as of noon May 27. Sales numbers show that despite strong negative sentiment surrounding the company's CEO Elon Musk, Tesla EVs have been selling like hotcakes compared to rivals.
Tesla saw an 8.6% sales decline year-over-year (from 140,187 units), but continued to surpass rivals. EVs from Hyundai, Kia, Ford, and Volkswagen offer variety to American car buyers, but they posed little threat to Tesla in Q1 from a sales perspective.
An electric vehicle sales report for the first business quarter of 2025 notes that Tesla sold 128,100 EVs, according to Kelley Blue Book. That's more EVs than Toyota (5,610), Hyundai (12,843), Honda (9,561), Ford (22,550), Kia (8,656), and Volkswagen (9,564) combined.
Based on the numbers, both of Tesla's two best-selling nameplates (the Model Y and Model 3) are outselling popular EVs from other brands by at least a 2:1 ratio.
Some automakers are lagging in terms of EV production but several companies, including Ford, Volkswagen, Hyundai, and Kia, are producing competitive electric vehicles that have the capacity to rival Tesla EVs in sales from a performance perspective. So, why are Tesla EVs still so popular despite all the controversy surrounding the company?
The electric vehicle space is still in its infancy compared to the internal combustion engine (ICE) vehicle space in America. Automakers like Ford and General Motors have long histories of producing best-selling nameplates. Tesla arrived as the new kid on the block in 2003. In 2010 it went public with an initial public offering share price of just $1.59 (after accounting for stock splits), according to Forbes.
Its first few vehicles, the Roadster, Model S, and Model X, weren't initially mainstream models. Instead the high-priced EVs focused on innovative features and performance. In 2017, Tesla introduced the Model 3 electric sedan, one of the best-selling EVs ever produced. The Model 3 had a lower MSRP than previous Tesla EVs, starting at just $36,200.
The Model 3 electric sedan remains affordable, with the 2025 model starting at $42,490 for the Long Range rear-wheel drive trim (without incentives). The EV tax credit brings its starting price closer to $34,990. The base model has a whopping 363 miles of EPA-estimated driving range.
Many American EV buyers are searching for affordable EVs with sufficient driving range to avoid range anxiety, based on sales data. The most popular Tesla EVs are models with affordable base trims that can travel for over 300 miles on a full battery. Tesla addresses two major pain points in the EV purchasing process: affordable pricing and practical driving range.
Charging is a huge factor when it comes to EV ownership. It's no secret that many regions in America lack the charging infrastructure to recharge EVs as simply as gas vehicles are refueled.
Tesla has been proactive in addressing a future need for EV chargers by establishing the Tesla Supercharger Network. The network hosts over 60,000 global superchargers. Tesla Superchargers are capable of replenishing 200 miles of driving range in just 15 minutes.
Several major automakers have partnered with Tesla to offer the company's network of chargers to non-Tesla EV owners. Tesla sells vehicle-specific adapters so EVs from General Motors, Rivian, Ford, Volvo, Polestar, Mercedes-Benz, Nissan, Honda, Hyundai, Kia, and many more can use Tesla Superchargers.
Few automakers have invested in EV charging infrastructure to the extent that Tesla has, giving it a huge advantage in terms of charging options. Between the affordability, driving range, and charging capabilities of Tesla vehicles, it isn't hard to see how the American automaker sold so many models in Q1.