Tesla Model Y registrations are surging in the United States: study

Key Points

• 📈 Americans registered twice as many Tesla Model Y crossovers year-over-year between January and May 2023.
• ⚡ Electric cars accounted for about 7% of new car registrations in the first five months of 2023, compared to 4.6% in the same period last year.
• 🚗 The Tesla Model Y experienced a significant increase in registrations, with a growth rate of 103% between January and May 2023.
• 📉 The Model 3 sedan, although outsold by the Model Y, still saw a year-over-year growth of 18%.
• 🌍 The Tesla Model Y became the world’s best-selling vehicle in the first quarter, driven in part by price cuts and increased demand in China.
• 💰 Tesla’s strategy is focused on higher volumes and a larger fleet for the Model Y, even with lower profit margins.

The Tesla Model Y may spend a bit more time as the world’s top-selling car. As per a recent study from Kelley Blue Book, Americans registered twice as many Tesla Model Y crossovers year-over-year in the period between January and May 2023. 

Data from Experian, a firm that tracks new vehicle registrations, revealed that electric cars now make up about 7% of new car registrations for the first five months of the year. For comparison, electric vehicles comprised 4.6% of new vehicle registrations in the same period last year. 

A notable part of this growth is due to the Tesla Model Y. Between January and May 2023, new registrations for the Model Y saw a 103% increase. Even the Model 3 sedan, which is now outsold by its Model Y sibling, saw a year-over-year growth of 18%. 

The Model 3’s growth is especially impressive considering the highly-anticipated release of Project Highland, which is expected to offer an updated exterior and interior, as well as a new design that would make the vehicle easier to produce. With Project Highland entering the market, the demand for the Model 3 is likely to see a rise.

The Model Y’s momentum, however, has been nothing short of remarkable. The all-electric crossover became the world’s best-selling vehicle in the first quarter, and it was driven partly by the company’s price cuts across the globe. In China alone, the Model Y’s price cuts made the vehicle even more of a force in the market. 

The more affordable price of the Model Y has made the vehicle a much more compelling option among car buyers worldwide. Back in April, Elon Musk noted that Tesla is looking to move higher volumes of the Model Y, even if margins on the vehicle are lower. “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,” Musk said.