The numbers tell a story
In a crowded landscape that includes legacy automakers, as well as rival startups like Rivian and Lucid, Tesla is still top dog when it comes to American electric vehicle sales. According to data from Kelley Blue Book and Cox Automotive, Tesla sales are eclipsing those of its competitors, even as it records an 8.6% year-over-year drop from last year. In Q1 2025, Tesla managed to move 128,100 of its EVs, while its closest competitor; Ford, sold just 22,550 vehicles in the same period.
However, one brand that has posted lower growth numbers than Tesla is the outdoorsy-focused Rivian. According to KBB and Cox, its meager 8,553 sales in Q1 2025 means that it recorded a whopping 37.1% year-over-year sales drop, higher than established names like Kia. In 2024, it managed to sell 51,579 vehicles, a 3% jump from that in 2023, but at the same time, Tesla managed to move over 1.8 million vehicles.
Rivian
Study: Rivian is struggling with a key EV-buying demographic
According to a recent study by S&P Global Mobility, Rivian’s is struggling to connect and resonate with Asian-American buyers in the United States. According to results from Q1 2025, Asian households represent just 7.2% of all the new cars that were registered. However, what stands out is that Tesla and Tesla alone captured a huge chunk of this key demographic, with its vehicles capturing nearly 27.2% of Asian-American drivers. Additionally, Asian-American households made up 12.7% of all electric vehicle (EV) sales that aren’t from Tesla or Rivian.
Asian-Americans are buying EVs, and the majority are buying Teslas. However, this shows that Rivian struggles to gain a foothold with this demographic, as just 13.7% of its sales are made to Asian-American households.
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One significant factor that S&P researchers Kent Chiu and Steve Giordano identified is the lack of diverse models on the Rivian lineup. Though the more compact R2 SUV is on the way and the hatchback-styled R3 is set to release in the future, Rivian only sells two models, the R1T and the R1S; the former being a pickup truck, a segment where Asian buyers are close to nonexistent. According to S&P data, Asian-Americans accounted for just 2.3% of all full-size pickup truck sales in the U.S., the same segment that the Rivian R1T and contemporary gas-powered rivals like the Ford F-150 and Ram 1500 compete in.
But even in the electric pickup market, Rivian falls short. Despite the Tesla Cybertruck’s unconventional design alienating “real truck guys” and “truck bros,” it’s hitting with Asian-American Tesla fans. According to S&P, nearly a quarter (24%, to be exact) of Cybertrucks were sold to Asian-American buyers, while just 8% of Asian-Americans bought a Rivian R1T.
The gap extends beyond style and substance
Despite this, S&P identified that Rivian faces challenges that extend beyond what kind of cars it wants to sell, as Tesla’s deeper appeal is something much more skin-deep.
According to data scraped by S&P researchers, some Asian-American buyers are particularly drawn to brands with a very strong premium brand image and companies known for their technological capabilities, which not only explains a gravitational pull towards Tesla but also established luxury car names in the gas-powered space. Their data shows that Asian-American buyers also like some of Tesla’s German luxury rivals; 28.3% of sales for the Mercedes EQS SUV can be attributed to Asian households, while 25.5% of BMW iX sales came from the same demographic. More remarkably, S&P also found that 33% of Tesla Model X sales were made to Asian-American buyers.
Final thoughts
I am Asian-American, and even as someone within this large and diverse diaspora that lives in the NY Metro Area, one of the largest hotbeds for EV ownership growth in the United States, this study does ring somewhat true from an anecdotal point of view.
I slightly disagree with the idea that vanity or a perceived luxury image significantly influences Tesla’s reputation within the Asian-American community. However, the appeal of a practical car with low maintenance costs, the widespread and convenient Supercharger network, and a buying experience without traditional franchised dealers are significant advantages for people of all walks of life, Asian or not.