Last year, the three best-selling electric vehicles (EVs) in the United States were all Teslas. The company managed to deliver over 250,000 Model Ys and 140,000 Model 3s in 2022.
However, Elon Musk believes Tesla has the capability to deliver up to 2 million cars annually.
To achieve this ambitious goal, Tesla has been significantly reducing prices. Elon Musk has already made six price cuts on Tesla models since the beginning of the year, which has forced mainstream automakers to reconsider their own strategies.
The price of the Model Y, the company’s top-selling vehicle, has been lowered to $47,740 in the US. After buyers apply the $7,500 federal tax credit, the price drops to just $40,240.
With the latest price reduction, the Tesla Model Y now costs nearly $5,000 less than the average US vehicle, as reported by Supercar Blondie.
These figures don’t take into account additional state-level rebates. In Colorado, a Model Y can now cost as little as $31,490.
In addition to these favorable pricing adjustments, Tesla’s charging infrastructure is widely recognized as the best in the industry. Over a dozen major automakers will use Tesla’s North American Charging Standard (NACS) for their future EVs. And in October, BP purchased $100 million of Tesla Supercharger equipment.
Tesla’s new strategy prioritizes sales volume over profits. During the Q1 earnings call on April 19, Tesla CEO Elon Musk stated that expanding the fleet and achieving higher volumes are more beneficial than lower volumes and higher margins.
Musk confirmed this strategy during a visit to Europe on Friday. While in Germany, Musk announced that Tesla would begin production of its long-awaited $25K EV at Giga Berlin. The $25K EV will be called the Model 2.