Tesla’s price cuts in the first quarter have resulted in a significant volume gain, with the newer Model Y crossover leading the way. According to registration data from Experian, Tesla’s US registrations rose 37% in the first quarter, with the Model Y soaring by 79% to 93,294 vehicles, representing over a third of all EV sales in those three months. Meanwhile, the older Model 3 sedan, Model X crossover, and Model S hatchback saw less growth. As the automaker adjusts to maintain a global growth target of 50% a year, Tesla is targeting between 1.8 million and 2 million vehicles in total global production this year.
Tesla’s share of US electric vehicle registrations was 60% in the first quarter of 2023, down from 72% in the first quarter of 2022. Analysts attribute the erosion of Tesla’s dominance to EVs from legacy brands and startups, such as Rivian Automotive. However, Tesla’s top EV rivals this year are Chevrolet, Ford, Volkswagen, Hyundai, and Mercedes-Benz, but competitors still face supply constraints for their new EV models.
In addition to price cuts, Tesla is offering preferential interest rates and free access to its Supercharger network for some models. It also revived a referral program that assigns points to Tesla owners who recommend the brand to friends and family. One industry forecaster is estimating Tesla’s second-quarter US deliveries at 164,437 vehicles for a 3.1% increase compared with the first quarter. For the full year of 2023, the forecaster is predicting US deliveries of 670,008 vehicles for the automaker.
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