Rahul Somvanshi
In the first quarter, Tesla (TSLA) achieved a significant milestone by producing the best-selling car in the world, the Tesla Model Y. According to the report by JATO Dynamics & Motor1.com, the Tesla Model Y is the top-selling vehicle globally in Q1, marking the first time an electric vehicle claiming this position.
Tesla sold 267, 200 Model Ys, representing a 69% increase compared to the previous year, during the same period. With 256, 400 vehicles sold worldwide, the Toyota Corolla secured the second spot. The comprehensive data of JATO covered 53 international markets along with additional market data, forecasts, & estimates. The strong sales performance of Model Y in Q1 suggests a potential trend that could make it the global leader in sales for 2023.
Elon Musk, the Tesla CEO, had previously announced the goal of making the Model Y the best-selling new vehicle in the world in 2023. Combining 2 popular aspects in the current market, the Model Y’s success can be attributed to its status as an electric SUV. Making it less susceptible to geopolitical conflicts, the Toyota Corolla maintains an advantage due to its global availability across numerous countries.
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The third best-selling car in 2022, Tesla’s recent price cuts & expansion efforts have fuelled demand for the Model Y. Experiencing a significant 91% increase from the previous year, in 2022, Tesla sold 747,500 units of the Model Y. Owing to Tesla’s price reductions & the growing popularity of electric vehicles, the gap between the Model Y & the Corolla has started to narrow.
The Model Y performed exceptionally well in China, the US & Europe as they are the key markets. Followed closely by the US at 31%, China accounted for 35% of Model Y sales. Compared to the previous year, Model Y sales grew 26% in China & a remarkable 68% in the US. In the European Union, the Model Y also claimed the top-selling vehicle title. Various Toyota models occupied the other spots in the top 5 selling vehicles, apart from the Model Y & Corolla.
According to the company’s earnings statement, Tesla implemented price cuts in Q1, leading to a decrease in gross margins to 19.3%. Elon Musk, the CEO, is not concerned, despite the decline in margins, as he believes it aligns with the company’s long-term vision. Through services like full- self-driving (FSD) & autopilot autonomy services, Musk anticipates generating significant profits in the future. While potential headwinds in China could pose challenges for Tesla’s expansion plans, investors & industry experts will closely watch the performance of Model Y sales in Q2, along with the availability of federal EV tax credits.
