Tesla Model Y registrations in the US doubled in the first five months of 2023, compared to a year earlier. The popularity of the car ensured the growth of the share of EVs in the general automotive market up to 7%.
Between January and May 2023, twice as many new Tesla Model Y SUVs were registered in the US than last year. Data provided by Experian via Kelley Blue Book showed that overall in the first five months of the year, electric vehicles accounted for 7% of new car registrations. This is a 2.4% increase over the same period last year when electric vehicles accounted for 4.6%.
It is worth noting that Model Y has led to much of this growth. The number of the Tesla compact SUV registrations rose by 103% between January and May. This is a significant increase in popularity. Model Y is currently priced at $47,740 before a $7,500 federal tax credit. Model 3 sedan registrations are up 18%. Model X and Model S did not show the same growth. Model X registrations rose by just 7%, while Model S fell by 59%.
In the first quarter of 2023, Model Y became the best-selling car in the world. Data for the second quarter of the year is not yet available. However, gradually incoming data from various countries showed that Model Y is at the top of the lists, which may indicate its strong position in the global market.
This year, the company has cut the prices of the Model Y and Model 3 several times. These steps have helped attract a significant number of customers. Federal tax credits for electric vehicles in the US have also played a very significant role in this. Tesla aims to get as many cars on the road as possible, even if each sale is less profitable than it was a year ago. The goal is not to just sell cars but to sell software for Full Self-Driving (FSD) later.
“We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and a higher margin,” Elon Musk said during the Q1 2023 Earnings Call.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.