Interesting Changes in Tesla Model 3 & Model Y Production, Pricing, & Sales Splits
I recently reported on Tesla’s impressive quarterly sales trends and yet another record sales quarter. Tesla only reports combined global sales of the Model 3 and Model Y combined and of its other models combined, but we have estimated and split out individual models sales from the beginning. That said, even splitting out individual sales can miss some big stories and nuances deeper underneath that surface. Let’s dig in a little further.
Tesla Model 3 SR Dominating in USA
First of all, leading Tesla number tracker and number cruncher Troy Teslike picked out a fascinating finding: the Tesla Model 3 Standard Range’s share of Model 3 sales in the US became completely dominant last year. I had some other theories when first seeing this, but Troy’s explanation was: “Model 3 Standard Range sales in the US increased over time because that’s what Tesla can produce because they don’t have enough 2170 cells to produce more Long Range versions. In the past, Tesla was focused more on range which is the most important criteria for EV buyers.” Presumably, that’s the core explanation. However, I also wondered if Tesla was prioritizing deliveries of the Standard Range (SR) in 2023 knowing that it would not qualify for the $7,500 US EV tax credit in 2024. Furthermore, I wondered if Tesla had perhaps tapped much of the market for the more expensive Model 3 but was still able to find many buyers for the cheaper Model 3 as it lowered prices and word of mouth spread about how cheap a Tesla could be. After all, Tesla did engage in a lot of price cutting as the year went on in order to stimulate more demand.