Tesla lost its top U.S. EV sales spot after federal tax credit expiration hurt its pricing edge, boosting rivals.

Tesla has dropped to second place in U.S. electric vehicle sales as the federal tax credit for new EVs expired, weakening its pricing advantage. Competitors including Ford, GM, and Rivian have gained market share, offering more affordable models and benefiting from the credit’s availability for their vehicles. Industry analysts say the shift marks a turning point in the EV market, with increased competition accelerating adoption across brands.