Here’s The EV That Took The Fight To Gas-Powered Vehicles This Year

The bestselling car in the world in 2023, and possibly 2024 as well, does not ever have an engine. That’s right, it is an electric vehicle with a motor and batteries. It is nearly five years old, so it is not a fresh new must-have model. This sales performance of an EV is particularly remarkable right now. EV sales have slumped, and many automakers are dialing back on their massive EV investments over the past few years. Ford has even paused production of the Lightning version of its best-selling F-150 pickup range.

Buyers who would have bought an EV are increasingly turning to hybrids, perhaps as a bridging option while the EV market sorts itself out. Hybrids are cheaper than EVs and more fuel efficient than comparable ICE vehicles. They have fewer hassles and offer greater resale value certainty. The reasons for the current EV slump are well-known.

Range anxiety
is still a problem, even as EV ranges increase. In most parts of the world, charging infrastructure is still immature. Battery prices are coming down, casting doubt on the resale value of today’s expensive EV. And EVs are still expensive. Our top-selling EV is not expensive for what it is, but still, double the price of its nearest global ICE competitor.

In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturer websites and other authoritative sources.

Tesla Model Y: The EV That Took the Fight to Gas-Powered Vehicles in 2024

Launched in early 2020, the Tesla Model Y startled the automotive world by outselling the perennial bestselling Toyota Corolla worldwide in 2023. So far in 2024, the Model Y is only marginally behind the Corolla.

The Tesla Model Y is a compact electric SUV, based on the popular Model 3 sedan in the way manufacturers are extending their sedan or hatchbacks into the more popular crossover. It is currently available in three trim levels, while the much-anticipated Juniper is probably launching early in 2025. The Long Range RWD and Performance versions seat five, while the Longe Range AWD can accommodate seven. The Model Y does not get stellar reviews from J.D. Power or Consumer Reports, yet it is the best-selling car worldwide and the fifth-biggest seller in the tricky US market that is dominated by pickup trucks.

Tesla Model Y’s Record-breaking Sales Performance

In 2023, sales of the Tesla Model Y jumped by 64-percent compared to the year before, selling around 1.2 million cars. It surpassed the perennial bestsellers like the Toyota Corolla and RAV4. This trend continued in 2024, although by October the Corolla was slightly ahead of the Tesla. The most likely reason for this huge sales increase was probably linked to well-planned and timed price cuts in key markets. Even though the Model Y was still more expensive than its nearest competitors, the value proposition of the Y suddenly hit a sweet spot. Motorists could suddenly afford to purchase their aspirations.

Tesla Model Y Compared To Best-Selling Gas-Powered Vehicles

The importance of the enormous surge in Model Y sales cannot be overstated. It has broken a psychological barrier, blurring the line between expensive, exclusive EVs and affordable, popular ICE-based vehicles. The fact that the model Y is a compact/crossover SUV meant it appealed to buyers who traditionally bought compact sedans like the Corolla, and popular crossovers like the RAV4 and Honda CR-V.

Comparing Sales Of The Tesla Model Y To Legacy ICE Leaders

Market Uncertainty

While early estimates have the Model Y as the sales leader again in 2024, preliminary sales figures up to October 2024 have the Corolla at 901,000 and the Model Y second at 866,000. Global and regional tensions, as well as looming trade wars could still skew the final sales figures for this year.

Tesla Model Y Vs. Similar Sized EVs

Comparing The Main Models In The Crossover EV market

Tesla is the market leader in EVs. It started the rise of the EV as a viable car option back in 2008, and has ridden the crest of that wave ever since. Globally, Tesla is facing increasing competition, especially by Chinese carmakers led by BYD. To put it into perspective, the Tesla Model Y sold 1.15 million units in 2023, out of a global total of EV sales of 13.6 million vehicles. Total EV sales worldwide are expected to reach nearly 20 million by 2025. There is clearly serious EV competition to Tesla in the world. Keep in mind that the U.S. market is about half the size of the Chinese by volume, and China and Europe combined account for half of global vehicle sales. Fortunately for Tesla, it has major factories in both these regions, and Tesla boss Elon Musk has a brilliant relationship with Chinese political leaders.

U.S. EV Crossovers

Not all EV brands are equally represented in all global markets, so for the sake of simplicity, here is a table comparing the Model Y with similar crossovers available in the US, as well as the US sales figures for each. There is a debate about if the Chevy Bolt is a crossover, so that was left off this list.

The Tesla Model Y clearly outsells the opposition massively in the U.S. Yet globally it faces stiff competition especially from

Chinese carmakers
. The sales breakthrough of the Model Y, while brilliant news for Tesla, has greater implications for the mainstream acceptance of the EV as a vehicle choice.

The Broader Impact Of The Tesla Model Y

​​​​​​​ The EV market is currently in flux, with rapidly changing prices, waning government support, and the threat of tariffs and trade wars curtailing growth. Political tensions and armed conflict all threaten global supply chains. Even though supply chains have been shortened since COVID, the auto industry, including EVs, is still a global operation. The U.S. auto industry increasingly relies on nearshoring, or moving labor-intensive industrial capacity closer to its borders. The break in supply of one crucial component can put the brakes on the whole industry.

Conversely, the rapid advance of battery technology points to a brighter future for EVs. The price of lithium-ion batteries is coming down rapidly, while batteries that do not rely on rare, problematic metals are becoming more mainstream. A new era of solid-state batteries seems likely from 2028/30. We can expect batteries that cost less, weigh less, charge faster, and last longer.

The Model Y Is Charting The Future Of Motoring

Traditionalists don’t like EVs. They don’t make vroom noises. They feel different from ICE vehicles. These drivers grew up with ICE vehicles and do not want this lifetime of motoring experience to change overnight. Now the Model Y is suddenly mainstream. It creates a motoring framework in which EVs are part of what motoring is.

EVs have been the future for a while now, but this future is now maturing. EVs will soon cost less to buy than a similar ICE. The lifetime ownership of the EV is already much lower than for any ICE or hybrid vehicle. Soon new battery technology will mean longer periods between charges, and battery range exceeding that of an ICE.

EVs Over The Last Few Years

It is difficult to understand the global vehicle market and the place of the EV within that. Worldwide, vehicle sales maxed out in 2017, but are expected to surpass that year in 2025 with 97.2 million units sold in the top 60 markets. This will be a 2.3-percent growth in 2024, and this growth will be largely driven by growth in the EV market. EV sales have grown from 3.4-percent of total car sales in 2019 (2.1 million vehicles) to 21.8-percent (13.6 million) in 2023. After the initial jump, the EV market is now moderating as growth shifts from early adopters to the mainstream, but the sudden boost in the sales of the Model Y may show renewed appetite among buyers.