Tesla, the electric vehicle pioneer, recently achieved a significant milestone. Their Model Y has emerged as the best-selling car model in the world, surpassing popular models like the Corolla and Golf. This achievement highlights the success of Tesla and its dedicated team, while also expressing gratitude towards their loyal customer base.
Determining global vehicle sales can be a complex process, as not all automakers report their numbers universally. Often, third-party organizations consolidate registration data from various regions to compile accurate figures. During Tesla’s first-quarter conference call, CEO Elon Musk confidently asserted that the Model Y was the best-selling vehicle in Europe and the best-selling non-pickup in the United States, which can be easily verified.
In 2022, the Corolla from Toyota Motor was the world’s best-selling car, with approximately 1.1 million units sold globally, according to auto data provider Focus2Move. The Model Y secured the fourth position on the list.
As of May, the most recent available data, the Model Y has taken the lead with around 428,000 units sold, marking an impressive increase of over 85% compared to the same period last year. Meanwhile, the Corolla stands in second place with approximately 411,000 units sold, experiencing a slight decline of about 7% from the previous year.
Toyota has not yet responded to a request for comment regarding their first-half Corolla sales figures.
From a corporate standpoint, Tesla reports combined sales of their Model Y and Model 3. In the first half of 2023, Tesla successfully sold nearly 860,000 units of the Model Y and Model 3 worldwide. In the United States alone, Tesla sold close to 201,000 Model Ys and 113,000 Model 3 sedans in the same period.
This achievement by Tesla’s Model Y serves as a testament to the company’s innovation and customer demand for electric vehicles. With its continued success, Tesla solidifies its position as a leader in the automotive industry.
The Rise of the Model Y in the U.S.
The Model Y has become the top-selling non-truck vehicle in the United States. While the Ford F-150, Chevy Silverado, and Dodge Ram pickup trucks hold the top three spots, the success of the Model Y, along with other popular cars and trucks, is undeniable. It’s clear that what every aspiring electric vehicle (EV) maker like Ford and General Motors (GM) needs is a hit product that can sell hundreds of thousands of units, rather than just tens of thousands.
Ford seemed to be on the right track with the F-150 Lightning but encountered setbacks due to a battery defect and plant upgrades. The sales of the F-150 Lightning reached their peak at around 2,400 units in October 2022. While this would annualize to approximately 30,000 units, accounting for only 4% or 5% of total F-150 sales in the U.S., Ford recognized the need for more. This may be why they decided to reduce the price of the F-150 Lightning in July.
As for GM, they have several EV models in the pipeline. Electric versions of the Chevy Silverado and Chevy Blazer are set to launch in 2023, followed by the electric version of the lower-priced Chevy Equinox in 2024. The regular Equinox is expected to sell around 200,000 units in the U.S. in 2023, making it a promising candidate for an EV success.
The Blazer, on the other hand, is projected to sell approximately 70,000 units.
The stakes are high for both GM and Ford. Currently, their shares trade at around six and eight times their estimated 2024 earnings respectively, while Tesla trades at 55 times its estimated 2024 earnings. While it’s unlikely that the gaps will close completely, a successful EV launch could greatly benefit these traditional automakers.
In terms of stock performance, Tesla’s stock has surged by approximately 111% this year, while Ford and GM’s shares have risen by about 20% and 15% respectively. In comparison, the S&P 500 and Dow Jones Industrial Average have experienced increases of around 18% and 6% respectively.
