Tesla’s CEO, Elon Musk, made a bold prediction back in April 2021, stating that he believed the Model Y would become the best-selling car in the world. Although met with skepticism, recent data suggests that his prediction is on its way to becoming a reality.
In 2022, the Model Y secured the third spot as the best-selling car globally, following two Toyota models, the RAV4 and the Corolla. Despite falling short of Musk’s initial prediction, the Model Y saw impressive sales figures, with approximately 747,500 units sold, representing a significant 91% increase from the previous year.
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.
Several factors contributed to the Model Y’s success, including Tesla’s price reductions across all markets in 2023, which boosted sales in China and the United States. Moreover, American buyers have been able to take advantage of a federal tax credit of $7,500 since January, further incentivizing Model Y purchases.
Tesla celebrated this milestone, expressing gratitude to its owners for making the Model Y the best-selling car in the first quarter of the year via its official Twitter account. While it remains to be seen if the Model Y will maintain its lead throughout the year, its achievement is significant as it marks the first time an electric vehicle has surpassed gasoline-powered cars in terms of global sales.
In the first quarter, Tesla delivered a total of 422,875 vehicles, including 412,180 Model Y and Model 3 units. As Tesla continues to innovate and expand its presence worldwide, it’s clear that the Model Y’s success has solidified its position as a strong contender in the automotive industry, spearheading the electric vehicle revolution.
