Key Points
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Chevrolet has overtaken the No. 2 spot for EV sales in the U.S.
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Cadillac EVs are bringing in new customers, especially from Tesla.
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GM has slowly built trust with consumers while Tesla has done the opposite.
Tesla(NASDAQ: TSLA) took over the U.S. electric vehicle (EV) market in impressive fashion. It went from an intriguing Roadster story to a full-fledged automotive company that’s generated bottom-line income — a rarity for pure-play EV companies these days. While many believed Tesla’s dominance to be durable and long-lasting, General Motors‘ (NYSE: GM) Chevrolet brand is already rocking the boat. And keep your eye on the company’s luxury line of EVs, it might sneak up on you.
Providing a spark
Competitors that have been checking the rearview mirror may have seen Chevrolet coming, but most of us probably didn’t. Chevrolet is now the second best-selling EV brand in the U.S., overtaking Ford and gaining on the top spot that Tesla has held closely for years.
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Amid all the doom and gloom surrounding tariffs, potential disruptions in trade and distribution networks, and uncertainty for long-term planning, Chevrolet has done nothing but shine for General Motors. May was Chevrolet’s second-best month ever for EV sales.
Chevrolet Equinox EV. Image source: General Motors.
That strong May result came on the heels of the company’s astounding 94% year-over-year growth in EV sales during the first quarter when GM’s Chevrolet became the fastest-growing domestic EV brand. In fact, General Motors’ recent surge helped the company’s market double to capture 15.5% of EV market share in the U.S.
Chevrolet posted a staggering 134% increase in EV sales during the first half of 2025, compared to the prior year. In fact, the two largest movers in year-over-year EV delivery volume change are GM and Tesla, and they’re moving in opposite directions as you can see in the graphic below.
Image source: Cox Automotive’s Kelley Blue Book Team.
“GM is driving the growth of the U.S. industry, and we have put real distance between us and our traditional competitors,” said Duncan Aldred, GM’s president of North America, according to Automotive News.
Sneaky Cadillac
While Chevrolet is hauling volume, Cadillac has sneakily been a big boost to GM’s EV ambitions. GM is claiming that Cadillac is already the luxury “EV leader” this year with a lineup of luxury electric SUVs hitting the roads, but it should be noted management doesn’t include Tesla in the mix due to its pricing structure.
Cadillac just delivered its best first-half sales since 2008 and sales were up across the board in all 50 U.S. states. Even better, the luxury brand is bringing in new consumers, which is notoriously difficult in the auto industry. In fact, Brad Franz, Cadillac’s global marketing director, told CNBC that nearly 80% of Cadillac EV buyers are new to the brand.
Franz even went on to note that at the time Cadillac was seeing an influx of consumers fleeing the Tesla brand with almost 25% of current Cadillac Lyriq buyers coming from Tesla.
Cadillac’s momentum is just beginning to accelerate: GM’s luxury brand already launched seven EVs in 2025 as it drives toward completing a full lineup. The strategy is simply that if consumers are turned off by the loss of the federal EV tax credit at the end of September, then GM will offer a wide range of product so consumers can find the right vehicle.
Another reason that Cadillac could be a sneaky help to General Motors’ EV ambitions is because the administration’s tariff policy has a very limited impact on Cadillac. The brand is almost entirely produced in the U.S., with the exception of the Optiq that is produced in Mexico.
Catch me if you can
Right now the EV business isn’t very enticing for automakers, but it’s a necessity to tap into the future bloodline of consumers. In fact, the vast majority of EVs are losing money for their manufacturers, but General Motors is doing something right by building out not only full lineups of vehicles, but also bolstering the luxury end with Cadillac — a brand that carries higher margins.
General Motors has slowly built trust with consumers at a time Tesla has undermined itself. While General Motors and its surging Chevrolet and Cadillac EVs have impressively moved up the rank in sales, it still has a long way to catch Tesla — but for once, the possibility doesn’t seem so far-fetched.
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Daniel Miller has positions in General Motors. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
