Musk, undeterred by the outcome, reiterated his forecast to shareholders last August, expressing confidence that the Model Y would surpass the Toyota models in 2023. The major obstacle for Tesla is the price disparity between the Model Y and the Toyota vehicles. With a base price of $47,490, the Model Y is significantly higher than the Toyota Corolla ($21,550) and the RAV4 ($27,575). This limits the Model Y’s market reach, especially in emerging markets and developing countries, making it reliant on the dynamics between the United States and China.
Despite these challenges, recent data from Jato Dynamics reveals that in the first quarter of 2023, the Model Y has emerged as the best-selling car worldwide. With approximately 267,200 units sold, surpassing the Corolla and RAV4, the Model Y achieved a remarkable growth rate of nearly 69% compared to the same period in 2022. This achievement signifies a significant setback for the Toyota Corolla, losing its long-held crown to an electric vehicle.
