EPA data shows record-high fuel economy for 2024 vehicles

The U.S. Environmental Protection Agency released data in February 2026 indicating that the average fuel economy for new vehicles reached a record 27.2 miles per gallon in 2024. Tesla led all automakers with an average of 118 mpg, benefiting from sales of electric vehicles, while Honda ranked second at 31 mpg. The findings come amid moves by the Trump administration to roll back federal emission standards.

The EPA's latest report, covering model year 2024 and comparing trends from 2019, highlights steady improvements in automotive fuel efficiency across the industry. Overall, the average new vehicle fuel economy stood at 27.2 mpg, a record high and a 41% increase from model year 2004. The agency noted that fuel economy has improved in 16 of the last 20 years.

Tesla topped the rankings with an average of 118 mpg, up slightly from 117.1 mpg in 2019, a 0.77% change. This performance is largely due to the company's sales of 589,160 electric vehicles in 2024, as reported by Cox Automotive. Federal rules grant extra credit for electric and plug-in hybrid sales, allowing Tesla to earn regulatory credits; the company reported $401 million in such credits for the fourth quarter of 2025. However, an AutoGuide.com analysis of the same EPA study suggested Tesla was getting less efficient over the five-year period, contrasting with the raw data showing a modest gain.

Among non-Tesla manufacturers, Honda ranked second with 31 mpg, a 7.27% improvement from 28.9 mpg in 2019, aided by hybrid models and a new electric vehicle. Hyundai placed third at 29.8 mpg (up 4.56%), followed by Kia at 29.2 mpg (up 3.91%). Toyota climbed to fifth with 29 mpg, reflecting a 12.4% increase from 2019, driven by its hybrid lineup. The best-selling models included Tesla Model Y, Honda CR-V, Hyundai Tucson, Kia Sportage, and Toyota RAV4.

At the lower end, Stellantis averaged 22.8 mpg, up from 21.2 mpg in 2019, but has faced fines totaling $190 million in each of the past two years for failing to meet Corporate Average Fuel Economy (CAFE) standards in 2019 and 2020 model years.

This data emerges as the Trump administration seeks to eliminate most federal fuel economy and emission rules, which currently mandate averages exceeding 50 mpg by 2031. Officials argue that easing these standards could enable automakers to produce more affordable vehicles.

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Illustration of empty Tesla dealership lot with unsold Model 3 and Y cars, signs noting end of $7,500 EV tax credit and 23% sales drop.
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Tesla US Sales Plunge After EV Tax Credit Ends, Despite Cheaper Models

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Tesla's US sales dropped 23% year-over-year to 39,800 vehicles in November 2025—the lowest since January 2022—following the $7,500 federal EV tax credit's expiration on September 30. New Standard variants of Model 3 and Y failed to stem the tide amid a broader 41% EV market decline, though Tesla's share rose to 56.7%.

Electric vehicle sales in the United States totaled more than 1.27 million units in 2025, capturing 7.8% of new-car sales, according to Kelley Blue Book estimates. While Tesla maintained its dominance with over 589,000 vehicles sold, General Motors surged 48% to claim second place. A sharp Q4 decline followed the expiration of the federal $7,500 tax credit in September.

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The US government rescinded a rule on Wednesday that allowed electric vehicles to count as having artificially high fuel-economy values under Corporate Average Fuel Economy (CAFE) standards. Analysts say this rollback pushes the US auto industry further towards petrol cars, discourages EV innovation, and gives China a competitive edge. Environmental groups criticise the move as harming American families' long-term interests for short-term profits to auto and oil giants.

The Chevrolet Equinox EV emerged as the best-selling non-Tesla electric vehicle in the United States for 2025, with 57,945 units sold. Tesla's Model Y and Model 3 continued to dominate the market, while the Ford Mustang Mach-E and Hyundai Ioniq 5 followed closely. General Motors reported significant growth in its overall EV sales amid challenges from the end of federal tax credits.

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Tesla has released a company-compiled consensus estimate projecting 422,850 vehicle deliveries for the fourth quarter of 2025, a 15% decline from the previous year. This figure, lower than independent compilations like Bloomberg's 445,061, marks an unusual public disclosure ahead of the official report due on January 2, 2026. The move appears aimed at managing expectations amid softer demand following the expiration of U.S. EV tax credits.

Tesla's vehicle registrations in Europe fell significantly in 2025, even as battery-electric vehicle sales surged across the region. Data from the European Automobile Manufacturers’ Association shows Tesla's market share halving, while competitors like BYD posted massive gains. The contrast highlights intensifying competition in the shifting automotive landscape.

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Tesla's unusual pre-earnings consensus of 422,850 Q4 2025 vehicle deliveries—a 15% drop from 2024 and below Wall Street's 440,000-445,000 forecast—highlights persistent EV headwinds. Added challenges include a post-tax-credit US sales trough, Chinese rivals, and a nearly 30% plunge in European demand linked to CEO Elon Musk's political activities.

 

 

 

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