Tesla, Inc. (NASDAQ:TSLA) may have been caught in a rut amid economic uncertainty and an industry-wide slowdown. Still, it boasts a robust sales track record in the U.S. over the past eight years compared to traditional legacy automakers. On Thursday, Elon Musk, CEO of the electric vehicle giant, acknowledged and credited the performance.
What Happened: A Tesla influencer shared a graphic on X, formerly Twitter, illustrating volume growth among automakers from 2015 to 2023. Highlighting a 2 million decrease in U.S. light vehicle sales during this period, the influencer showcased a chart indicating that Tesla’s U.S. sales surged by 632,088 between 2015 and 2018.
Notably, Hyundai Motor Company‘s (OTC:HYMTF) Kia subsidiary, Volkswagen AG (OTC:VWAGY), Geely Automobile Holdings Limited (OTC:GELYF), Subaru (owned by Fuji Heavy Industries), and Mazda Motor Corporation (OTC:MZDAY) were the only automakers reporting positive growth.
In contrast, Detroit’s big three — General Motors Corp. (NYSE:GM), Ford Motor Co. (NYSE:F), and Stellantis AG (NYSE:STLA) — experienced sales declines of 504,718, 621,750, and 730,638 units, respectively. Toyota Motor Corp. (NYSE:TM), the world’s largest automaker by volume, recorded a drop of 250,836 units between 2015 and 2023. In response to the post, Musk said: ”Credit to the Tesla team.”
Credit to the Tesla team https://t.co/GTzn8DWBOu
— Elon Musk (@elonmusk) January 11, 2024
See Also: Everything You Need To Know About Tesla Stock
Why It’s Important: Tesla recently announced record fourth-quarter deliveries totaling 484,507 units, including models such as the Model 3, Y, S, and X, as well as the Semi and Cybertruck. The company reported annual deliveries of 1.81 million units.
Tesla’s sales achievements are attributed to factors such as production efficiency, diversified production bases, and product appeal. The company’s Gigafactories are strategically located in the U.S., China, and Germany, with one under construction in Mexico. Plans are also in place for Tesla to enter the Indian market. Notably, Tesla’s production processes are more automated compared to traditional legacy counterparts.
Despite ambitious electric vehicle (EV) transitioning plans by U.S. automakers, they have struggled to meet their initial goals. The big three U.S. legacy automakers have scaled back their EV ambitions, with Toyota, for instance, maintaining a focus on hybrid EVs despite entering the pure-play battery EV market.
While Tesla’s dominance in the EV market may face challenges in the long term due to increasing competition from both legacy automakers and EV startups, its established scale over the years serves as a unique selling proposition. The recent surge in sales by China’s BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) has positioned it as the biggest battery EV manufacturer, surpassing Tesla in the fourth quarter.
The scale Tesla has built up over the years can be its unique selling proposition if it can execute its strategy.
Tesla ended Thursday’s session down 2.87% at $227.22, according to Benzinga Pro data.
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(Image created with artificial intelligence on MidJourney and Jonathan Weiss on Shutterstock)
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