Tesla Model 3 is the best selling car by revenue, more updates from Tesla Shareholder Meeting
Tesla CEO Elon Musk’s presentation at the 2019 Annual Shareholder Meeting earlier this week was packed with some new information regarding the Tesla vehicle lineup, Gigafactories and more — we are going to focus on what was discussed about the Tesla Model 3 at the event.
Tesla Model 3 Milestones
Elon Musk, first of all, discussed the milestones Tesla has achieved over the last 4 quarters that include outselling all competitors combined, highest revenue car in the U.S. and demonstrating best in class performance (Elon’s presentation video down below).
Best Selling Car By Revenue
The following graph shows how Tesla Model 3 gained the 1st position in terms of generating sales revenue leaving behind mass-market sedans like the Toyota Camry and Honda Accord which are one of the highest selling mid-size sedans in the United States.
The 2019 Honda Accord price sits between $23,720 for the basic trim and $34,990 for the full loaded Touring variant — similarly a Toyota Camry in the U.S. costs between $24,095 – 34,850 — while the Tesla Model 3 base price starts at $35,000+ but the hassle of getting the off-menu $35k Model 3 pushes most of the customers to order the $39,900 Standard Range Plus variant.
The higher price of the Tesla Model 3 with sales number even less than these mass market affordable sedans generates more revenue, Tesla did not mention the exact number in $B for the Model 3 generated revenue but the chart shows it is almost reaching the $9 billion mark.
63% Trade-ins coming from non-Premium cars
This is an insane figure, according to Tesla 63% of Tesla Model 3 trade-ins are coming from non-premium car owners, this means that the owners of Honda Accord, Toyota Camry and even Honda Civic and Toyota Corolla are taking a keen interest in the Model 3.
If the non-premium car owners are stretching their budgets and are opting for a premium electric sedan, this means a disruption in the non-premium car segment in addition to the mid-size premium cars like the Audi A4 and BMW 3 Series.
According to Tesla’s data analysis presented in the above chart, Tesla Model 3 is getting 12% trade-ins from the ‘mid-size premium sedans’ and 25% trade-ins from other luxury vehicles, the largest trade-ins are coming from the non-premium segment i.e. 63%.
Additionally, Tesla’s estimated global market size of non-premium vehicles is 10s of millions of cars which is potentially unlimited, the mid-size premium sedan segment is capped at 1.7 million and the other luxury/premium vehicles account for 6.8 million cars worldwide, if Tesla is able to transition owners from each segment towards EVs as per the above data, history will be made, once again!
Another key point that this chart highlights is the ‘total cost of ownership’ of the Model 3, which according to the automaker is comparable to a Honda Accord or Toyota Camry and several Model 3 owners testify this across social media and Tesla related forums.
Let’s listen to Elon Musk’s presentation at the 2019 Tesla Annual Shareholder Meeting in the video below, I have set the timer to when Elon appears on the stage, to avoid the uninteresting part of the event.
Featured Photo: @thedizzyviper / Instagram
Video: 2019 Tesla Shareholder Meeting
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