Tesla Model Y Registrations Double In US, Driving EV Market Growth

So far in 2023, the Tesla Inc TSLA Model Y is the best-selling vehicle worldwide. The Model Y has seen a significant surge in registrations with Americans registering twice as many of these SUVs in the first five months of 2023 compared to the same period last year, as shared by Kelley Blue Book.

Overall, electric vehicles accounted for 7% of new car registrations during this period, up from 4.6% in the previous year. With a 103% growth in new registrations, the Model Y, which currently starts at $47,740, was a major driver behind this increase. Meanwhile, registrations for Tesla's least expensive Model 3 sedan, priced at $40,240, grew by 18%.

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The Model Y's surging popularity helped it become the world's best-selling vehicle last quarter, largely due to a sales boom in China. Tesla implemented several price cuts on the Model 3 and Model Y this year, instigating a price war in the electric vehicle market.

Federal electric car tax credits have also been a boon, with both the Model 3 and Model Y qualifying for a $7,500 tax rebate that is unavailable for cars manufactured outside North America.

The average price of electric vehicles has dropped 20% within a year, from $66,390 in June 2022 to $53,438 in June 2023, as per Kelley Blue Book data. This drop in prices aligns with a strategic shift in Tesla's approach, focusing on increasing the number of vehicles on the road, even if each sale is less profitable than before.

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Photo: Courtesy Tesla