Tesla Model Y Set to Take Top Spot as World's Best Selling Car in 2023

The Tesla Model 3 and Model Y are in the Top 10 vehicles sold worldwide

Tesla

Tesla's CEO, Elon Musk, once said, "I say something, and then it usually happens. Maybe not on schedule, but it usually happens." In April 2021, Musk predicted that the Model Y would be the world's best-selling vehicle. He wasn't sure if it would happen in 2022, but he was confident the electric SUV would take the global crown from Toyota's Corolla in 2023.

Moving on Up

According to a report from Focus to Move, the Model Y is now the fourth best-selling vehicle worldwide after an astonishing 88 percent jump from 2021 to 2022. There were 759,000 Model Ys sold last year, just 28,000 units behind the third-place Ford F-150 which has been the best-selling truck for the previous 46 years. Toyota claimed the top two spots, with the RAV4 at 870,000 and the Corolla selling 1.12 million.

The runway is clear for the Model Y to vie for the world's best-selling car title in 2023. There are three critical elements to achieve the goal: capacity, demand and competition.

Capacity

First, capacity. To reach the top spot, the Model Y will need to increase its sales by approximately 60% compared to 2022, which is a very achievable goal, considering both the Giga Texas and Giga Berlin factories aim to produce 500,000 cars per year. During Tesla's Q4 earnings call, Elon Musk said Tesla plans to produce about 1.8 million vehicles in 2023, up about 37% from 2022. Musk later added that Tesla may be able to reach 2 million vehicles in 2023, which would be an increase of 52% over its 2022 numbers.

Demand

Second, demand is there. In the wake of the recent price drops, Bank of America predicts Tesla's volume to jump 53 percent, up from its original forecast for 17% growth. Also, Musk said during the fourth quarter earnings call that the company is receiving the most orders year to date in its history. Plus, the price tag of the Model Y and Model 3 is now very close. As a result, many buyers may consider getting into the slightly larger Model Y over the Model 3.

Competition

Thirdly, the competition. Toyota's Corolla is half the price of the Model Y. Therefore, to grab the top spot in the world, the Corolla will have to come down a few pegs. As the manufacturer is playing catch up on the EV market, perhaps the bZ4X will take away from Corolla's typical buyers.

Top 5 Cars Sold Worldwide

Below is a list of the top 5 vehicles sold worldwide, as compiled by Focus2Move. It's not clear whether Focus2Move includes used cars in their figures or if they include sales for vehicles that have yet to be delivered.

Tesla Sales Forecasted to Surpass 5% Market Share, Tops in Luxury

Tesla is expected to top luxury vehicle sales

Kelley Blue Book

Cox Automotive, the world's largest automotive services and technology provider, has released a forecast predicting that Tesla will lead the luxury market in Q1 2023 with sales of 180,000 units, a gain of nearly 40% from Q1 2022. As a result, Tesla is expected to post solid sales gains and surpass a market share of 5% for the first time. This marks a significant achievement for the electric car maker as it continues to gain market share in the luxury car market.

Improved Inventory and Lowered Prices to Spark Demand

By far, Tesla will be the top luxury-vehicle seller in the U.S. in Q1, with sales more than double that of BMW or Mercedes. This impressive performance is likely due to Tesla's innovative technology, sleek designs, and rising brand recognition.

Tesla's success in Q1 2023 is expected to be primarily driven by improved inventory levels and lowered prices. According to Cox Automotive, new-vehicle inventory levels have significantly improved from Q1 2022, which has helped stimulate sales despite elevated prices and high auto loan rates. Tesla also lowered its prices in the first quarter to spark demand.

Tesla's Record Quarter

Tesla's Q1 2023 sales are expected to reach 180,000, a record quarter for the company in the U.S. In addition, the company's growth trajectory continues to outpace its competitors, with Tesla's market share forecasted to surpass 5% for the first time. This puts Tesla on track to achieve its goal of selling 1 million electric vehicles per year, an ambitious target the company has set for itself.

Strong Outlook for Tesla

Cox Automotive's forecast is good news for Tesla investors and enthusiasts. The electric car maker has been expanding its production capacity to meet the rising vehicle demand. Tesla's Model Y, launched in 2020, has been a hit with customers, with the company ramping up production to meet the high demand. Tesla also plans to launch the Cybertruck, its first all-electric pickup truck, in 2022.

As more consumers look to switch to electric vehicles to reduce their carbon footprint, Tesla's growth prospects are expected to remain strong. The company's continued innovation in the electric car space and aggressive expansion plans could help it solidify its position as a leader in the automotive industry.

Other Key Take Aways from Cox

The release suggests a positive surprise for U.S. auto sales in Q1 2023. Still, supply constraints and affordability issues are expected to put a ceiling on what's possible for the rest of the year. Despite these challenges, Tesla's continued growth trajectory and strong performance in the luxury market are promising signs for the electric car maker.

General Motors is expected to finish Q1 as the top seller of new vehicles in the U.S., with sales volume forecasted to increase by over 15% year over year to reach 587,000 units. However, sales will drop from Q4 2022 when GM's volume hits 618,692.

The Bottleneck Has Passed, but Prices Are Too High

New-vehicle inventory levels have significantly improved from Q1 2022, up roughly 70% from the volume recorded in the early months of 2022. This has helped stimulate sales despite elevated prices and high auto loan rates.

Fleet sales for the entire year of 2023 are forecasted at 2.2 million, up 23% from 2022, when 1.8 million units were sold to commercial buyers.

Cox Automotive has adjusted its full-year new-vehicle sales forecast to 14.2 million, an increase of nearly 3% from 2022.

Elevated prices and average auto loan rates above 8% are expected to hold back new-vehicle sales for the rest of the year. The typical new-vehicle loan payment was more than $750 a month in Q1, which is out of reach for many households.

Tesla's sales forecasted to surpass 5% market share in Q1 2023 is a significant milestone for the electric car maker. Tesla's success in the luxury market is due to its innovative technology, sleek designs, and raising brand recognition. In addition, the company's improved inventory levels and lowered prices have helped stimulate sales despite elevated prices and high auto loan rates. With a record quarter forecasted for Q1 2023, Tesla's outlook remains strong, and the company continues to lead the charge in the electric car market.

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Tesla Will Display the Vehicle's Navigation Route in the Tesla App

Tesla is updating its app to show the vehicle's planned path to its destination

Not a Tesla App

Tesla is consistently working to improve its mobile app experience for users, and now they're adding another new feature. Building on the features unveiled last year, Tesla is now adding the ability to view the route the vehicle is taking toward its destination. Thanks to Max for the tip!

Navigation Path

When using GPS navigation, the app directly displays the driver's destination, distance, and estimated arrival time (ETA) on the main screen. By tapping into the navigation section, users can access a map that shows the vehicle's location, nearby Superchargers, and destination details. The app also displays the vehicle's expected state of charge upon arrival at the destination, providing greater transparency for owners regarding battery consumption. The one missing piece was the suggested route the vehicle is taking to reach its destination. That is now being added to the app and is available for select users.

In the last Tesla app update, v4.19, the company introduced a new API called "nav route." This API looked to go unused at first, but this new feature appears to leverage this API to display the path the vehicle will take, much like the in-car navigation system.

Building on Latest Update

The October 2022 update brought a host of additional features to the Tesla mobile app, enhancing convenience for its users. For instance, the app now shows more information about the media playing in the vehicle, such as song title, artist, and destination details.

Energy Enhancement

The automaker rolled out major revisions to its Energy app in its cars, which displays the battery's state of charge upon departure and arrival, as well as the main causes of battery drain. Tesla started bringing this functionality to the app for older Model S and Model X vehicles, and will hopefully soon expand it to other vehicles.

The app will provide a detailed breakdown of energy usage for various features, such as air conditioning, driving, battery conditioning, elevation, and other components like charging mobile devices, onboard computers, lights, and the audio system.

As Tesla continues to hire additional app developers, users can anticipate further updates and improvements to the mobile app, offering more helpful features and enhancing the overall user experience.

We anticipate that users will be required to have Tesla app version 4.19 and Tesla's car version 2023.6 in order to use this new app feature.

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