US: Tesla's Price Cuts Boosted Model Y Sales By 79% In Q1 2023

Other Tesla models are not growing as fast.

By: Mark Kane

May 17, 2023 at 8:08am ET

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Tesla's price reductions applied during the first quarter of 2023 (initially in January and then several times adjusted), combined with renewed eligibility for the federal tax credit (Model 3/Model Y), allowed the automaker to noticeably increase sales in the United States.

However, the growth does not spread equally throughout the lineup. According to the registration data from Experian (via Automotive News), Tesla's new BEV registrations in Q1 amounted to 155,360, which is 37 percent more than a year ago (and 60 percent of the total all-electric car volume).

As it turns out, the Model Y is responsible for about 60 percent (93,294) of all Tesla registrations. This is the most popular Tesla model, which noted a 79 percent increase year-over-year (higher than the BEV segment as a whole - 63 percent). The Model Y also holds a 36 percent share (more than one-third) of the total BEV segment.

Other Tesla cars are not so strong. The Model 3 in Q1 was up by only 11 percent to 52,885. That's still a very strong result (the second most popular all-electric car), but considering similar price cuts and incentives, it seems that consumers simply prefer the crossover/SUV body type.

The Model S is down by 71 percent year-over-year to 2,636 units (potentially because Tesla started deliveries in various global markets, shifting its logistics), while the Model X was up by 34 year-over-year to 6,545.

Registrations in the US - January-March 2023:

Tesla Model Y - 93,294 (up 79%)
Tesla Model 3 - 52,885 (up 11%)
Tesla Model X - 6,545 (up 34%)
Tesla Model S - 2,636 (down 71%)
Tesla total - 155,360 (up 37%)

It will be interesting to see what the future will bring, but for now, it seems that the Model Y is the company's main product.

What do you think?

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Comments

There are a lot of rumors about a potential Model 3 upgrade coming in the not-too-distant future so this might boost sales in 2023/2024.

In the case of the Model S/Model X - the biggest issue is that there are more and more other premium/luxury models on the market with a similar price tag, competing for consumers.