Photo courtesy of Tesla, Inc.
Tesla Model Y is a highly successful product, and according to CEO Elon Musk, it is expected to become the best-selling car of any kind in 2022 or 2023. The electric SUV is already taking over the markets in which it is sold, and it will enter new markets later this year, which will further boost its popularity.
Tesla Model Y swiftly entered the market, and in its first year of sales entered the Top 5 best-selling EVs in the world. This success promised the model further explosive growth in popularity, which was confirmed by the sales figures in Q1 2021. However, at the moment, Model Y is only sold in the North American market, where its production in Fremont will soon reach full capacity, and in China, where its production and sales started only in January of this year.
Considering its popularity at this early stage of the game, Tesla CEO Elon Musk on the Q1 Earnings Call shares his confidence in Model Y becoming the best-selling car of any kind in the next one to two years.
"When it comes to Model Y, we think Model Y will be the best-selling car or vehicle of any kind in the world, and probably, next year. So I am not 100% certain of next year, but I think that it's I'd say more likely than not that in 2022 Model Y is the best-selling car or truck of any kind in the world."
Later on Twitter, he explained that such a scenario is quite probable, at least based on revenue in 2022 and possibly total units sold in 2023. It is worth noting that this statement by Musk is fully substantiated. In addition to the significant and proven successes to date, the company has a lot more information to share about the future development of the Model Y ramp.
Seems quite likely at least based on revenue in 2022 & possibly total units in 2023— Elon Musk (@elonmusk) April 26, 2021
Tesla continues to optimize production and they have achieved great success with Model Y. The company's CFO Zachary Kirkhorn said that over time, Model 3 and Model Y have evolved significantly. Besides the fact that the production lines were improved, they began to produce a better product. Thus, Tesla achieved a reduction in body weight by as much as 60%, which is reflected in the cost of parts and the time spent on the production of the final product.
Another very important factor is that the production of Model Y will soon begin to further scale, and rapidly. When it comes to volumes, Tesla is aiming to establish four factories worldwide producing Model Y. The Fremont factory has almost reached target production, Giga Shanghai is continuing to ramp up to reach its planned production capacity over the next three months. And the other two, new factories are being built as quickly as possible.
With ambitious goals, Tesla has made impressive progress in the construction of Giga Berlin and Giga Texas, which will go into operation this year. Musk said the company expects to start production of Model Y at these sites later this year, with mass production in 2022. These developments will ultimately allow Tesla to produce the number of Model Ys necessary to become the best-selling car of any kind in 2022 or 2023.
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