Tesla is the largest EV company worldwide. And it is no surprise that the Tesla Model 3 emerged as the best selling EV of 2020. The vehicle sat at no 1 position of the top 10 list and had a huge lead from the runner-up. This clearly shows two things. 1st is the fact that Tesla is doing great as a company and secondly that most customers looking to get an EV is going for the cheapest Tesla available.
Tesla Model 3 sales and the company’s dominance
Tesla Model 3 is the cheapest Tesla vehicle one can get. Reports suggest that out of the total 499,550 units sold by tesla in 2020, 365,240 units were of the Model 3 vehicle. The price to performance ratio of the vehicle is great, and it brings all the necessary features of Teslas. Unlike many other cheaper EV alternatives, the range of the Model 3 is also doable and not something that will bother you. This is the main reason why Tesla Model 3 had a 12% market share in 2020.
Now coming to the dominance part, the Model 3 sold 3 times more than the EV at the 2nd spot. With a total of 119,255 units, the Wuling HongGuang Mini was the second most selling EV. At the same time, the no 3 EV on the list was Renault Zoe with a total of 1000,431 units sold. We can very well see the huge gap that no of units Tesla has from other companies. And it doesn’t stop there because the Tesla Model 3 wasn’t the only vehicle on the list from the company.
Coming at number 4 the Tesla Model Y sat comfortably with 79,734 units sold. At the same time, the fifth place was held by Hyundai’s Kona. Tesla Model 3 sold more than the total vehicles sold by the companies at the no 2 and no 3 spots. While the more premium Model S sat above, much cheaper alternatives in the list below.
How has huge Tesla Model 3 sales affected Tesla?
The fact that Model 3 has been the most selling vehicle of the company resulted in a problem. Since it is the company’s cheapest vehicle, the profit margin on the vehicle is much lower than the more expensive cars that Tesla makes. This has resulted in a lower than expected EPS as the company could not meet the analysts predicted numbers. And the difference was not minute but actually massive at around 10%. This resulted in a price downfall of the shares of the company. For the first time after Tesla crossed the $800 mark, it went below that after the q4 earnings call 2020.
So, yes even though the sales of the Tesla Model 3 are great, the fact that it is accounting for mode than 60% sales of the company isn’t great for the company’s business.
What do you think about the Tesla Model 3 being the best selling EV in 2020? And why has that happened according to you? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.