The Tesla Model Y was the best-selling vehicle globally during the first quarter of 2023. This was the first time an EV was the top seller in the world.
The distinction of being the best-selling global vehicle doesn’t necessarily mean Tesla gained huge profits from its sales. Still, seeing an EV at the top of the list shows the forward progression of the automotive world toward more electric vehicles, which has been the goal in many countries around the world. The only downside to being the best-selling vehicle is that Tesla cut prices and may have given up profits to enjoy this top spot.
Tesla found the top spot
How many Model Y compact electric SUVs were sold during the first quarter? The total sales reported was 267,000 models in Q1, which is an increase of 69% compared to one year ago. The next four top-sellers in the world all belong to Toyota. It should come as no surprise that the Toyota Corolla was the second-best-selling vehicle in the world, with 256,400 models sold during the first quarter. Next, we find the Toyota Hilus, which isn’t sold in America but still achieved 214,700 models sold. The Toyota RAV4 comes in fourth with 211,000 models sold, while the Toyota Camry rounds out the top five with 166,200 vehicles sold during Q1.
What makes the Model Y stand out?
The Toyota Corolla is truly a global product, being sold in nearly every market in the world. The Tesla Model Y is an SUV, and it’s electric. This places it in fewer markets and at a higher price point than the Corolla. This gives the Model Y a great way to stand out from the Corolla, which we’ve seen for several decades in most places that sell cars. The Model Y is sold in a few markets, but those markets are embracing EVs.
The Tesla Model Y was sold mostly in China, which accounted for 35% of the global sales of this EV during the first quarter. The United States was a close second at 31% of the overall sales. These numbers represent strong increases in sales in both counties, with China selling 26% more Model Ys than during the same time a year ago, while growth in the United States was 68% for this Tesla EV. The Model Y was also a top seller in Europe, allowing this electric SUV to cover three of the most active and popular automotive markets in the world.
Tesla went with volume over profits
The gross margins for Tesla during the first quarter dipped to 19.3%, which is a reflection of the price cuts for the Tesla Model Y and other EVs. An example of these price drops is the Model Y Long Range, which began at $65,990 and dropped to $50,490 during the first quarter. This price drop prompted higher volume sales, allowing Tesla to deliver more models to customers than ever before. Tesla has been working on competing with high-volume automakers since it first brought the Model 3 to the market, and now it might finally be close to where it needs to be to compete.
What should you know about the Tesla Model Y?
The Model Y is an all-electric compact SUV that can drive for up to 330 miles on a full charge when the Long Range model is chosen. You can seat up to seven people in this SUV, which isn’t something you find in many small SUVs. This capability is the result of utilizing all potential interior space to offer a larger cabin and bring more seating to the small SUV market.
The Model Y tops the charts for safety with the IIHS and NHTSA, both of which awarded this electric SUV the highest safety ratings. This means this Tesla SUV can be an impressive and safe vehicle for you to drive and enjoy. This could be a big part of why the Model Y sold so well during the first quarter of the year.
In addition to the lowered prices of this Tesla electric SUV, it qualifies for the full $7,500 Federal Tax Credit under the new rules. The lower price plus the tax credit drops the overall price of this vehicle to a much more affordable level.
When charging the Model Y at a Tesla Supercharger, 162 miles of range can be added in only 15 minutes, making it easy to continue the drive in this electric SUV.
The Tesla Model Y hit the top of the list for global sales during the first quarter of the year; will it do this again during the second quarter?
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