For the first time an electric car: The best-selling car in the world comes from NASDAQ giant Tesla

Tesla has reached a new milestone: for the first time, an electric vehicle has made it to the top of the best-selling vehicles in the world.

• Model Y best-selling car in the world
• Toyota relegated to second and third place
• Price reductions ensure success

The fact that Tesla takes the top spot among the best-selling electric cars has not surprised market observers for years. But the fact that a model from the electric car manufacturer is sold more frequently than all vehicles with a traditional drive is a novelty in the history of the automotive industry.

Analysis experts see Tesla’s Model Y at the top

According to analysis experts at JATO Dynamics, Tesla’s Model Y was sold 1.23 million times worldwide in 2023, securing the crown. Although market observers admit that not all of the global figures are available yet, they still believe that the Model Y is “unassailable”. Sales increased by a whopping 64 percent, which Felipe Munoz, Global Analyst at JATO Dynamics, described as “unprecedented, especially for a vehicle that is one of the top ten bestsellers. What Tesla was able to achieve with the Model Y in such a short time is simply remarkable.”

The dominance of the Model Y in the important vehicle markets was particularly noticeable: the Tesla vehicle took the top position in both China and Europe. Based on figures from the China Association of Automobile Manufacturers, Tesla shipped 45 percent more Model Ys into the country in 2023, with a total of 456,000 Model Ys arriving in China, while a majority of European countries reported cumulative registration numbers of 255,000 vehicles in Europe.

Toyota pushed out of first place

The previous leader Toyota had to give up its position: the RAV4 and the Toyota Corolla had won the title from the Japanese in previous years. The RAV4 was sold a total of 1.07 million units in 2023, putting it second behind the Model Y, and the Toyota Corolla sold 1.01 million vehicles, placing it in third place. “Toyota has a strong presence worldwide, “The RAV4 (an SUV) and the Corolla (a compact car) make the brand attractive with a diverse offering,” emphasizes Munoz. However, he sees the disadvantage of both vehicles in the fact that they only have hybrid drive options, but Toyota does not provide purely electric car alternatives for these models. “While Toyota still had a strong year in 2023, the RAV4 and Corolla are simply unable to compete in the electric car market, which is becoming increasingly established and important in Europe and China,” the market expert continued.

Price reductions lead to success

In particular, the series of price cuts vehemently pursued by Tesla in 2023 may have contributed to the success of the Model Y, as JATO Dynamics also emphasizes. “The average selling price of a Tesla Model Y in November 2023 was 18% and 23% lower than the average cost of an electric vehicle in Germany and the USA, respectively.” This boosted the already high demand.

And Tesla will continue to stick to this strategy of defending or gaining market share through price reductions in 2024: The electric car manufacturer last cut prices for the Model Y in China in mid-January. The vehicle also recently became cheaper again in Europe and on the German market: Depending on the equipment, the Model Y now costs up to 5,000 euros less in this country, while German customers are now paying 42,990 euros for the entry-level model, which is at least 1,900 euros less than before.

Tesla has recently come under pressure

The fact that the Model Y is the best-selling vehicle in the world could reconcile investors a little with the recent bad news that the electric car giant had in store. The most recent quarterly balance sheet did not convince the markets; in particular, the sobering outlook for further business development caused uncertainty and prompted some analysts to adjust their price targets.

The price cuts, which secure Tesla market share but have an impact on the margin, are also viewed with skepticism.

Editorial team finanzen.net

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