Tesla Model Y becomes first EV to earn world's best-selling car tag

Tesla Model Y has become the first all-electric vehicle to be billed as the world's bestselling car, a report has shown. Tesla Model Y surpassed Toyota's RAV4 and Corolla models to top global sales rankings in the first quarter of 2023, according to data from Jato Dynamics.

The 2023 Model Y starts at $47,490, considerably more than the 2023 Corolla ($21,550) and RAV4 ($27,575), reports The Verge.

Tesla Model Y sold 267,200 units globally in the first quarter this year, compared to 256,400 Corolla and 214,700 RAV4 units sold.

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Tesla CEO Elon Musk even estimated back in 2016 that this model would draw demand "in the 500k to 1 million unit per year level."

Musk in 2021 predicted that the Model Y would claim the top spot in the world.

"We think Model Y will be the best selling car or vehicle of any kind in the world. Probably next year. I'm not 100 per cent certain next year, but I think it's quite likely," he had told investors.

Tesla remains the market leader in the electric vehicle (EV) market in the US with more than 50 per cent share, selling more cars than the other 17 automotive groups combined.

EV sales increased to represent 7 per cent of all US passenger vehicle sales in 2022, according to Counterpoint Research.

"Tesla is dominating the US EV market while other automotive giants like Ford, General Motors, Stellantis, Volkswagen and Hyundai are struggling to provide strong competition," according to research analyst Abhik Mukherjee.

"Moreover, with the recent price cuts by Tesla and all versions of Tesla's Model Y becoming eligible for the EV tax credit subsidy, it is expected that Tesla will take an even higher market share," Mukherjee added.