How The Tesla Model 3 Is The #1 Selling Car In The U.S.

SEP 10 2018 BY VANJA KLJAIC 29

It is, but only if we take a different, more financially-oriented, approach to the conventional look at sales.

Clearly, Tesla’s Model 3 didn’t beat all the other gasoline and diesel-powered vehicles in terms of sheer sales volume. However, the California-based carmaker hit nearly 50% market share for electric vehicles, according to our own estimates. Furthermore, the Model S and Model X captured 15% share of the market. But that’s not where the good news for the carmaker ends.

According to  Twitter user Troy Teslike, who polls those who order Model 3s and publishes some nifty statistics, the average sale price for the Tesla Model 3 surged past $55,759 in the last couple of months (in fact, it hit $60,000 just recently). This, alongside record deliveries in the last two months, pushed the Tesla Model 3 into the #1 best-selling car spot in the US by revenue in both July and August.

And it now seems all the early production woes and delivery problems have been resolved, as Tesla is seemingly plowing along in both revenue and vehicle deliveries.

According to CleanTechnica, the rundown for the Top 5 best-selling cars, ranked by revenue (July-August) is:

  1. Tesla Model 3 – $992.5 Million
  2. Toyota Camry – $765.4 Million
  3. Honda Accord – $678.7 Million
  4. Honda Civic –  $567.2 Million
  5. Toyota Corolla – $536 Million

If and when Tesla is able to deliver the cheaper, $35,000 variant of the Model 3, we feel that the company will be well on its way to becoming one of the biggest carmakers out there. Even though the onslaught of the German car makers and their EVs is on the horizon, Tesla seems to have solidified its position in the market.

And from what we’re seeing in the last few weeks, the only way for the upbeat and rather revolutionary carmaker is up. Let’s just hope all of the other automakers follow along and we have a more environmentally-friendly future ahead of us.

TESLA MODEL 3

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2. Tesla Model 3
Range: 310 miles; 136/123 mpg-e. Still maintaining a long waiting list as production ramps up slowly, the new compact Tesla Model 3 sedan is a smaller and cheaper, but no less stylish, alternative, to the fledgling automaker’s popular Model S. This estimate is for a Model 3 with the “optional” (at $9,000) long-range battery, which is as of this writing still the only configuration available. The standard battery, which is expected to become available later in 2018, is estimated to run for 220 miles on a charge. Tesla Model 3 charge port (U.S.) Tesla Model 3 front seats Tesla Model 3 at Atascadero, CA Supercharging station (via Mark F!) Tesla Model 3 Tesla Model 3 The Tesla Model 3 is not hiding anymore! Tesla Model 3 (Image Credit: Tom Moloughney/InsideEVs) Tesla Model 3 Inside the Tesla Model 3 Tesla Model 3 rear seats Tesla Model 3 Road Trip arrives in Tallahassee Tesla Model 3 charges in Tallahassee, trunk open.

TESLA MODEL 3 PERFORMANCE

Tesla Model 3 Performance - Dual Motor Badge
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Tesla Model 3 Performance Tesla Model 3 Performance Tesla Model 3 Performance Tesla Model 3 Performance - Midnight Silver Tarmac Motion (wallpaper 2,560x – click to enlarge) Tesla Model 3 Performance - White Interior - Wide Tesla Model 3 Performance - White Interior - Touchscreen

Source: CleanTechnica

Categories: Sales, Tesla

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29 Comments on "How The Tesla Model 3 Is The #1 Selling Car In The U.S."

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Congrats to Tesla !

CDAVIS

@Martin T. said: “Congrats to Tesla !”
—————
+1

Chris.

It’s a good news for Tesla but i’m not sure about the top5 ranking.
See below the Top20 vehicles sold in July 2018
The Toyota Camry is only #9 and you have ~70’000 Ford F-series sold for only July.
If you take the maximum top1 revenues for July/August : 990 Millions the average price for the Ford F-Series will be ~7000$ (990Millions / 140000).
It’s a very low price 😉

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Doggydogworld

6 of the top 7 on that chart are “trucks”. You have to read “Model 3 taking over” articles very literally. Only about 40% of US new vehicle sales are “cars” these days. The rest are pickups, SUVs and CUVs.

XyzAbc

I think they’d be happy to take 40% of the US market.

ffbj

Notice how the headline says CAR. A car is not a truck, and a truck in not a car.

Pushmi-Pullyu

Right. The auto industry makes a clear distinction between “cars” and light trucks, in a way that we ordinary mortals don’t. I know plenty of people who casually call their pickup or SUV their “car”.

Some comments have suggesting this separation is intentionally misleading on the part of IEVs. It’s not; they are following industry standards.

The overall category, including “cars” and light trucks, is called “light duty vehicles” in the industry; a term you’d never see in the headline of an article aimed at a general reading audience, like most articles at IEVs.

CBPfromTN

Exactly. If trucks were included, the chart would say “vehicles,” not “car.” Big difference unless you are a Tesla hater 😉

Ron M

Well if you look at August then Tesla Model 3 is already at number 17 and that includes trucks and SUV’s.
It’s also against companies that have decades of experience.
However lack the vision that’s why Tesla will is the most innovative company on the planet.

Terawatt

Someone doesn’t get something somewhere here. :p

https://finance.yahoo.com/quote/TSLA/

The stock is mostly down over the past month. Why? It was flying around $350 mid-August, but closed (down 6.3%) at $263 yesterday. From reading this site, my impression is there’s been lots of good news, and important good news.

But in any case, TM3 being the #1 on the sales by revenue charts is pretty wild. I hope the quarter also shows a healthy profit. Someone should record boardroom meetings around at the various incumbents, especially Toyota, and publish it for the world to have a laugh..! 😀

Michael

There has been a lot of good news and also some troubling stories. The stock has been priced in past largely on the good news and promise of good news. The troubling stories call into question how long Musk can retain control of the company and whether the company can finally, now that the S/X products are at a very mature level and the Model 3 ramp is 50% behind them, show an operating profit. Eventually, they’ll need to. Shareholders are there to give a company starting capital and then they want to see profits. The shorts keep underestimating how much patience TSLA shareholders have and Tesla fanbois often call into question whether they have any understanding at all how companies operate, which means they seem to think the shareholders’ patience with TSLA will be infinite.

Pushmi-Pullyu

The problem is that Wall Street investors, following the “greed is good” movement of the 1980s, think that short-term profits “isn’t everything, it’s the only thing”. Thank goodness Tesla takes a more old-fashioned approach to running a business, plowing all profits back into growing the company rather than paying dividends to shareholders.

This has created a great deal of friction between traditional investors and Tesla. Fortunately, a lot of non-traditional investors are willing to keep funding Tesla.

On the flip side, it is almost universally acknowledged that Tesla’s stock price is far higher than it ought to be by any rational accounting. Even Elon has said as much a few times. So perhaps it’s not such a bad thing if the stock price has recently taken a dive. It’s still inflated far above what nearly all analysts say it ought to be.

Doggydogworld

This is great for Tesla and EVs in general.

Total US vehicle revenues are ~45 billion / month. At a billion the Model 3 alone is grabbing 2% of that and Tesla overall is around 4%. That’s a big deal.

It’s hard to translate the initial rush of pent-up demand into long-term sustainable demand. Tesla has some levers they can pull to maintain demand. A Model 3 leasing program will be a big one. Lower priced versions (probably not $35k) will let them target a larger slice of the population. They have to reduce manufacturing costs from the current $51k per car, obviously. And there’s always a huge surge of demand immediately before a subsidy cut. Q3 and Q4 are looking good.

Pushmi-Pullyu

“It’s hard to translate the initial rush of pent-up demand into long-term sustainable demand.”

Why? Do you think the ratio between initial orders and sustainable demand will be significantly different for the Model 3 than it has been for the Models S and X?

And if so, why?

Lou Grinzo

Any EV on the road is a plus for everyone, so Tesla shipping a buttload of cars is very good news, for the obvious, immediate environmental reasons.

But it’s also a big help in educating mainstream US consumers. Lots of shiny new EVs driving around means a lot more owners telling their co-workers, neighbors, relatives, and friends hearing about them. Nothing will help de-weirdify EVs for mainstreamers quicker than hearing that Bob in accounting or their sister Sue has an EV, loves it, and saves a lot of money on fuel and maintenance.

Never forget: We’re still fighting an uphill battle against ignorance and obsolete or simply wrong perceptions. That’s why I love it when people ask me about my EV, even though I get a lot of snarky questions, e.g. can it drive at highway speeds, can it handle snow, etc. We all need to be EV ambassadors.

Seven Electrics

No SUVs listed, and the Civic and Accord are very similar cars. This analysis just punishes manufacturers who sell closely related variants–i.e. manufacturers who are better at manufacturing. Treat the Civic and Accord as one and they dominate.

Viking79

It is a list of cars, not SUVs. The shear fact that Tesla is on this list in any form gives a good indicator of how much Tesla can grow. If you add the Model S into that list of revenue then suddenly Tesla is back on top again (or essentially a tie).

Honda and Toyota are the biggest car sellers in the US, and Tesla has just as big of a business from car sales.

When will people admit that Tesla is going to be a hugely successful company? Do they have to out revenue every other automaker? People will still find a way to move the goalposts.

Pushmi-Pullyu

“When will people admit that Tesla is going to be a hugely successful company?”

Serial Tesla bashers like Eleventy Pretend Electrics never will. If Tesla was the #1 auto maker in the world, he’d still find some way to keep trolling; to belittle Tesla’s accomplishments.

Shaun

The Civic and Accord are only similar in that they have four doors and four wheels. As a longtime Honda enthusiast, your statement made me literally laugh out loud.

Pushmi-Pullyu

As a former owner of a 1975 Honda Civic CVCC, I am in full agreement. The current Civics look a lot more like Accords than like my car did, but that’s just the natural evolution of the market. Civics and Accords aren’t any more alike than most randomly picked sedans from any other single auto maker.

Michael

The Civic is a variant of the Accord?

And you wonder why people think you’re dishonest.

Pushmi-Pullyu

Oh, he knows. He just pretends not to, and he doesn’t care.

CDAVIS

Dear jimmy,

“Sorry to inform you of some bad news. Your “Tesla Is Worthless” short thesis has recently taken another full frontal hit:

How The Tesla Model 3 Is The #1 [by sales revenue] Selling Car In The U.S….”: source

https://insideevs.com/tesla-model-3-1-selling-car-us/

I know this news comes at a bad time considering your Dunkin Donut short position is also turning out to be a massive bad bet.

Don’t be discouraged though…

You are providing a positive value to the investment community:

Us less knowledgeable stock investors can count on taking the exact opposite position of your higly tuned investing strategy to achieve Alpha ++.

Best Regards.

Michael

The headline is supported by the data in the body of the article. Your objection is odd.

CDAVIS

@Curt Brackenrich said: “This site is morphing into such a Tesla fan-boy forum that it’s getting hard to even read it…”
————-

Currently Tesla is the *only* car maker that is making “cool” EVs that have access to a robust convenient and reliable fast charge network for those occasional long distance drives… hence the large Tesla fan base.

Hopefully as the traditional car makers over the next few years transition from halo/compliance EVs to exiting compelling EVs a strong fan base for those cars will also emerge. A more diverse fan base would be a good thing.

Get Real

Look at the EV scoreboard link at the top of every InsideEv page and you will see why Tesla news outranks the news from the laggard, legacy LICE makers.

Ron M

I like the idea that Musk promoted a number of long time employees to key positions in Tesla. They have proven there worth and are 100% agree with Musks vision.
I remember when Home Depot hired Nardeli as CEO and after a few years they gave him a $200 million golden parachute to leave. He may have been a lousy CEO but he sure knew how to negotiate his contract when he got hired.

Pushmi-Pullyu

I’m sorry if you can’t deal with the fact — that’s fact, not opinion — that Tesla already has the global top-selling model of EV, and almost certainly will soon be out-selling all the other EV makers combined. Tesla has also for some years now been doing more to push the EV revolution forward than all other auto makers combined.

If for some reason you think Tesla shouldn’t get the recognition it so richly deserves, then there’s the door. Don’t let it hit your arse on the way out.

Nix

If you want more news coverage of other EV car record sales, go complain to those other car companies and demand they produce cars worthy of stories about THEM being number 1 in US sales by dollar value, or top 5 in all passenger car sales, etc.

Beg them Please, pretty please with sugar on top, whatever it takes for them to have sales stories like this about their EV’s too.

I’m very serious. Get them to have a US sales success equally worthy of reporting, and I’ll write and submit the story myself! We would all love to have EV’s from Toyota and Honda replace their ICE cars on this list. Go get them to build a line of EVs that actually competed head to head with Tesla’s cars and we will all be very happy.