Tesla Model Y is set to be crowned as the world's best-selling vehicle for 2023. This achievement marks a significant milestone, as it is the first time an electric vehicle has led global vehicle sales, dethroning traditional automotive giants.
According to preliminary data gathered by JATO Dynamics, the Model Y sold an impressive 1.23 million units in 2023, representing a substantial 64% increase from the previous year. This remarkable performance signifies Tesla's growing dominance in the EV market, despite the company's relatively recent establishment. It also fulfills a bold statement made by Elon Musk in 2021.
When it comes to Model Y, we think Model Y will be the best-selling car or vehicle of any kind in the world.
-Elon Musk, April 27, 2021 (Q1 Earnings Call)
Dominating Key Markets
In the latest earnings call, Musk stated, “Model Y became the best-selling vehicle globally, as predicted. The best-selling vehicle of any kind, not just electric vehicles, with over 1.2 million units delivered.” Incredibly, that was the only mention of this incredible feat during the call.
The success of the Model Y was particularly pronounced in Europe and China, the two largest EV markets globally. In China, Tesla shipped over 456,000 units of the Model Y in 2023, showing a significant 45% increase from 2022. In Europe, the Model Y's registrations exceeded those of well-established models like the Dacia Sandero, Peugeot 208, and Volkswagen T-Roc, with over 255,000 units registered.
Competitive Pricing and Tesla's Reputation
Its competitive pricing strategy was key to the Model Y's success. In November 2023, the average retail price of the Model Y was 18% and 23% lower than the average EV cost in Germany and the US. This strategic pricing and Tesla's reputation for reliability and competitiveness in the EV market have significantly fueled consumer demand.
The Model Y's performance has considerably impacted Tesla's overall sales, accounting for two-thirds of the automaker's deliveries in 2023. This dominance underscores Tesla's influence in shaping consumer preferences and the growing importance of EVs in the automotive sector.
The rise of the Model Y signifies a shift in the global vehicle rankings, with Toyota's RAV4 and Corolla, which have consistently held top positions in recent years, being overtaken. Despite Toyota's strong global presence and diverse offerings, its lack of pure electric options has limited its competitiveness in the rapidly evolving electric car market. That said, Toyota, Honda, and several others are ramping up EV SUV production, and Lucid is also teasing a Model Y competitor. They have a lot of work to do to dethrone the new king.
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The road to bringing FSD to Europe has been a long and complex one and filled with regulatory and bureaucratic hurdles. Elon Musk, as well as other members of Tesla’s AI team, have previously voiced their grievances with the regulatory approval process on X.
However, it appears that there is finally some progress in getting things moving with recent changes to upcoming autonomy regulations, but the process still seems slow.
Waiting on the Dutch
Elon commented on X recently, stating that Tesla is waiting for approval from Dutch authorities and then the EU to start rolling out FSD in Europe. Tesla is focusing on acquiring approvals from the Dutch transportation authority, which will provide them with the platform they need to gain broader acceptance in Europe. Outside of the Netherlands, Tesla is also conducting testing in Norway, which provides a couple of avenues for them to obtain national-level approval.
The frustration has been ongoing, with multiple committee meetings bringing up autonomy regulation but always pulling back at the last second before approving anything. The last meeting on Regulation 157, which governs Automated Lane Keeping Systems, concluded with authorities from the UK and Spain requesting additional time to analyze the data before reaching a conclusion.
Tesla, as well as Elon, have motioned several times for owners to reach out to their elected representatives to move the process forward, as it seems that Tesla’s own efforts are being stymied.
This can seem odd, especially since Tesla has previously demoed FSD working exceptionally smoothly on European roads - and just did it again in Rome when they shared the video below on X.
— Tesla Europe & Middle East (@teslaeurope) June 12, 2025
DCAS Phase 3
While the approval process has been slow, Kees Roelandschap pointed out that there may be a different regulatory step that could allow FSD to gain a foothold in Europe.
According to Kees, the European Commission is now taking a new approach to approving ADAS systems under the new DCAS Phase 3 regulations. The Commission is now seeking data from systems currently operational in the United States that can perform System-Initiated Maneuvers and don’t require hands-on intervention for every request.
This is key because those are two of the core functionalities that make FSD so usable, and it also means that there may not be a need to wait years for proper regulations to be written from scratch. Now, the Commission will be looking at real-world data based on existing, deployed technology, which could speed up the process immensely.
What This Means
This new, data-driven regulatory approach could be the path for Tesla to reach its previous target of September for European FSD. While the cogs of bureaucracy are ever slow, sometimes all it takes is a little data to have them turn a bit faster in this case.
Alongside specific countries granting approval for limited field testing with employees, there is some light at the end of the tunnel for FSD in Europe, and hopes are that a release will occur by the end of 2025. With Europe now looking to North America for how FSD is performing, Tesla’s Robotaxi results could also play a role.
Tesla’s marketing has always been relatively unconventional, relying on word-of-mouth rather than traditional advertising. The passion of the owner’s community is always massive, but it is especially high now with the launch of the Robotaxi network just around the corner.
Tesla is now tapping into that spring of fan creativity and announced the TeslaVision video contest, with some seriously impressive prizes up for grabs.
Announcing the TeslaVision fan video showcase
Tesla owners & supporters have always been able to see our products & mission for what they truly are.
Your word of mouth has made Tesla what it is today.
The OGs will remember that in 2017, we held our first video contest. 8 years… pic.twitter.com/6pPpkqmqOH
The core of the contest is simple. Create a video that shows how your Tesla gives you more in life. Tesla is looking for submissions that highlight themes of freedom, safety, fun, and convenience.
Prizes
The prizes definitely make this contest worth entering if you’re good with a camera and have some basic video editing abilities.
For North America, the prizes include a brand new Model Y AWD Long Range, alongside an all-expenses-paid trip to Austin for a tour of Giga Texas. The grand prize winner will also be able to custom order their Model Y, allowing them to select their preferred wheels and color.
The two runners-up won’t get a Model Y, but they’ll also enjoy an all-expenses-paid trip to Giga Texas for a tour of the factory.
The travel and tour include lodging in Austin for 2 nights, as well as economy-class round-trip tickets from anywhere in North America. Tesla will also provide a vehicle for use during the trip.
For long-time followers of Tesla, this contest may feel familiar. The contest is a direct throwback to the 2017 Project Loveday contest, which was inspired by a letter to Tesla from a 10-year-old aspiring marketer. That contest was won by MKBHD, with his submission below:
How to Enter
If you’re ready to start filming, here are the key pieces of information you’ll need to know:
Video must be 90 seconds or less
Video must be uploaded to YouTube with a public URL
Make a post on X and Instagram tagging “@Tesla” and include the words “TeslaVision contest” in the post.
Provide links to both social media posts in your submission to Tesla’s form
Provide your personal details in the form
You have until July 17th, 2025, or until Tesla receives 10,000 entries, whichever comes first.
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