Through the first half of 2022, Tesla sold 315,000 Model Y electric vehicles globally (128% increase versus 2021). Model Y is the company’s midsize EV that debuted in 2020. Many industry experts have assumed that Tesla sales growth will begin slowing for a myriad of reasons like increased competition in the EV space; poor product quality; petulance of Elon Musk; Musk’s Twitter acquisition overhang on Tesla, etc. There is no evidence that Tesla sales growth might decline any time soon. What many fail to recognize about a vehicle like Model Y is that not only is it Tesla’s best seller, but also it is the best selling EV in the world (in fact, Tesla has the top two best selling EVs in the world). What is even more impressive about Model Y, however, is that it now is the best selling vehicle within the category of all SUVs and Cross-Overs (including all ICE SUVs and Cross-Overs). Think about all of the high volume ICE nameplates like Ford Explorer, Toyota Highlander, or Honda CR-V. Then imagine that Model Y now outsells all of those vehicles in just two years of existence.
I see no evidence that Musk’s ability to continue scaling Tesla’s vehicle production and sales is waning. While many will point to declining Tesla market share as competitors enter the EV market, that is a naturally occurring math equation as more competition enter a growing space like EVs. Forget market share. Focus on the scaling of production and sales as long as the EV segment continues to increase. Those automakers that reach significant aggregate EV volume with exponential growth will be the among the winners in the space. Today, that is Tesla!