The year 2024 will go down in history as a turning point for electrified vehicles in the U.S. For the first time, electric vehicles (EVs) and hybrids combined accounted for 20% of all new car and truck sales nationwide. This remarkable achievement signifies not only technological progress but also a growing cultural shift among Americans toward greener and more sustainable transportation options.

According to data from Motor Intelligence, a total of 3.2 million electrified vehicles were sold in 2024. Of these, hybrid vehicles, including plug-in hybrids, made up 1.9 million sales, while fully electric vehicles contributed 1.3 million. Although gasoline-powered cars still dominate the market, their share slipped below the critical 80% threshold for the first time, dropping to 79.8%. This signals that the long-anticipated pivot to electric mobility is no longer an abstraction but a reality reshaping the automotive landscape.

Leading this transformation was Tesla, the undisputed frontrunner in the EV sector. With industry-leading technology and consumer-first innovation, Tesla maintained its dominance, fueled by its popular Model Y and Model 3 vehicles, which continue to be the best-selling electric cars in the country. However, Tesla’s market share saw a dip, falling to 49% from 55% in 2023, as competition heated up. Rivals like Hyundai Motor Group, which includes Kia, claimed a notable 9.3% of the EV market, edging out General Motors at 8.7%. Close behind was Ford Motor Company at 7.5%, while luxury manufacturer BMW captured 4.1%.

In total, American consumers had 68 electric vehicle models to choose from in 2024, with 17 of them debuting as brand-new entries. Twenty-four models posted year-over-year sales growth, reflecting both innovation and increasing adoption. Each new vehicle launch underscores the competitiveness of the market, as automakers race to meet consumers’ growing demands for performance, design, and affordability in the electrified space.

Despite this year’s notable gains, uncertainties lie ahead. President-elect Donald Trump’s incoming administration has announced plans to roll back federal policies that have been instrumental in supporting EV adoption. These include emissions regulations introduced during the Biden administration and, perhaps most critically, the federal tax credit of up to $7,500 per EV purchase. Analysts warn that eliminating this incentive could hinder affordability, especially for middle-class Americans, and put pressure on projected sales growth beyond 2025.

CNBC auto analyst Phil LeBeau expressed concerns about the impact of political shifts on the sector. “Federal incentives have played a significant role in making EVs accessible to everyday consumers,” he noted. However, LeBeau remains cautiously optimistic, citing a larger societal shift as the true driver of change. “Americans are becoming more environmentally conscious,” he explained. “This isn’t just about tax credits; it’s about an evolving mindset. From urban professionals seeking cleaner commute options to rural families looking to save on fuel costs, electrified vehicles are appealing to a broad spectrum of people.”

Cox Automotive, a reliable authority on market trends, remains positive but measured in its outlook for the coming year. The organization predicts that EVs alone will make up 10% of new vehicle sales in 2025, while the broader electrified segment, including hybrids, is projected to account for 25% of the market. This continued growth will depend heavily on evolving consumer preferences and the regulatory landscape under the new administration.