In what could mark an important milestone for Tesla, the brand’s Model Y has emerged as the world’s best-selling vehicle. While full-year sales data is pending, preliminary figures from JATO Dynamics and Car Industry Analysis indicate Tesla’s dominance. The Model Y, a nameplate just four years old, sold 1.23 million units globally, marking a 64% increase from 2022. This growth, though lower than the 91% surge from 2021 to 2022, signifies a significant rise in volume. More important to note is that the Tesla Model Y happens to be first EV to ever top the yearly sales chart globally. And in doing so, it beats out cars like the Toyota Corolla and Toyota RAV4 that have been around for decades.
Notably, the Model Y excelled in Europe and China, the largest EV markets. In China alone, over 456,000 units were sold, representing a 45% increase. European sales also saw the Model Y surpass the Dacia Sandero with over 255,000 units sold. The Model Y is an incredibly popular product by Tesla, with every two out of three Teslas sold being Model Ys. It along with the Model 3, almost entirely props up Tesla’s volumes with the two of them accounting for 1.77 million out of 1.8 million Teslas sold last year.
The RAV4 and Corolla recorded 1.07 million and 1.01 million units sold, respectively. Tesla’s sales surge reflects a broader trend towards electrification in the automotive industry, challenging traditional automakers and reshaping market dynamics. The news should bring cheer to Tesla fans and investors after lower than expected sales growth, in spite of significant discounts, has driven down stock prices by almost 30 percent. Production challenges with the Cybertruck have eaten into the company’s profits, and Tesla’s operating margin is now similar to other auto brands around the world. Tesla however claims that it is between two growth waves and that the new $25,000 Tesla, that the company expects to launch next year, will help offset the challenges that it is currently facing.
