Tesla Model Y Is the World's Best-Selling Car In 2023

By Kevin Armstrong
Model Y, Best Selling Vehicle in the World
Model Y, Best Selling Vehicle in the World
Tesla

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.

Musk Teases New Model for Early 2025 That Will Use a Mix of Next-Gen and Current Platforms

By Cláudio Afonso

“We have updated our future vehicle line-up to accelerate the launch of new models ahead of our previously communicated start of production in the second half of 2025”. This was one of the key sentences that were part of Tesla’s deck shared on Tuesday directly before its financial results.

Since Reuters’ report a few weeks ago saying Tesla had “scrapped” the highly expected cheaper model— which Elon quickly denied on X —retail and institutional shareholders started asking for more details on Tesla’s product roadmap for 2024 and beyond.

In the earnings conference call, Elon Musk reiterated that Tesla expects to launch the next model in “early 2025, if not late this year”.

“We've updated our future vehicle lineup to accelerate the launch of new models ahead of previously mentioned start of production in the second half of 2025. So, we expect it to be more like the early 2025, if not late this year. “

Over concerns of temporary production halts to update the factories for these new models, Musk said that Tesla will produce new models with certain aspects from their next-generation platform and current models. This will reduce the number of changes needed on production lines and allow Tesla not only to ramp up production faster but also to get the vehicles to market quicker.

Model Y Redesign

Tesla appears to hit that their next-gen vehicle will be less “next-gen” than they were initially aiming for, but to get a new vehicle out the door by late 2024, the process would already have to be in motion. Tesla may likely be referring to the redesigned Model Y, which is expected to reuse many parts from the new Model 3. Earlier this year, Tesla said that the redesigned Model Y will not be released this year, so it makes sense that they’re looking to speed up that production.

Tesla CEO concluded by saying that these measures will allow Tesla to reach a capacity of over 3 million units. Tesla produced 1.84 million vehicles in 2023. However, this year they’re ramping up Cybertruck production and introduced the new Model 3 into new markets.

And we think this should allow us to get to over 3 million vehicles of capacity when realized to the full extent.

Tesla reported on Tuesday its earnings results followed by a conference call where it teased its upcoming Robotaxi and its next-generation platform saying its “purpose-built Robotaxi product will continue to pursue a revolutionary ‘unboxed’ manufacturing strategy”.

Earlier in the day, Tesla announced the new Performance variant of its sedan Model 3 with deliveries in the United States starting already next month. The new version starts at $45,490 (after applying the $7,500 Federal EV tax credit) and goes from 0 to 60mph in 2.9 seconds.

Tesla on FSD: Close to License Deal With Major Automaker, Announces Miles Driven on FSD v12

By Cláudio Afonso

On Tuesday Tesla reported its earnings results followed by a conference call that brought several updates on the company’s roadmap for future vehicles, autonomous driving, Optimus and much more.

While answering a question from Goldman Sachs analyst Mark Delaney about updates on the licensing of Tesla’s Full Self-Driving (FSD) technology, Elon Musk said they’re talking to one major auto manufacturer and there’s “a good chance” the company signs the first deal before year-end. However, he went on to say that it would probably be three years before the necessary changes are integrated into the car.

I think we have a good chance we do sign a deal this year

Brings Benefits to Tesla

The technology would require other automakers to start using the same cameras and hardware as Tesla, meaning that Tesla may not only generate money from licensing FSD but also from selling the hardware itself. However, there would be other benefits as well. When licensing FSD, Tesla would likely own the data gathered with the system well, further helping them with data and edge cases that need to be solved to reach full autonomy.

people don't understand all cars will need to be smart cars… Once that becomes obvious, I think licensing becomes not optional.

Tesla’s Chief Financial Officer Vaibhav Taneja commented pointing out that future partners “take a lot of time in their product life cycle” resulting in a gap between the deal signing and the arrival in the market of Tesla’s FSD software.

Miles Driven With FSD

On the conference call, Musk added that Tesla now has over 300 million miles that have been driven with FSD v12 since it was launched just last month. He added that it's becoming “very clear that the vision-based approach with end-to-end neural networks is the right solution for scalable autonomy”.

Tesla said it will continue to increase its “core AI infrastructure capacity in the coming months” adding that in the first quarter, it completed the transition to hardware 4.0 with China now receiving the upgraded FSD computer and cameras.

Over the weekend, Tesla reduced the price of FSD dropping it from $12,000 to $8,000 for customers in the United States and from CA$16,000 to CA$11,000 in Canada.

Earlier this month, Tesla implemented a 50% price reduction for FSD subscriptions in the U.S. and introduced the subscription model in Canada at a great value of CA$99 per month.

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