Reducing the price of Tesla vehicles at the beginning of the year was a factor to raise demand.
According to new registration data from Experian, Tesla has topped the luxury car market in the United States, taking first place from BMW.
Unsurprisingly, the price cut for Tesla vehicles at the start of the year, which amounted to $13,000 cuts from the Model Y and thousands from the nullModel 3, greatly impacted demand.
- This effect first appeared most prominently in China, where Tesla's price cut quickly stole sales away from local leaders BYD, NIO, and Xpeng.
- Now, a similar effect is being seen in the United States, where Tesla has dethroned German giant BMW as the country's top luxury car seller, according to Automotive News.
- Tesla first stole the crown from BMW last year but the gap between them widened.
- Tesla sold 49,917 vehicles in the US in the first month of the year, while BMW sold 31,070 vehicles.
- Tesla's lead was more noticeable compared to third and fourth place, Mercedes and Lexus, which sold fewer Teslas combined.
- As Automotive News points out, Tesla's dominance can easily be explained by the exponential growth in demand it continues to generate.
- Tesla sales boomed 34% in January over the same time in 2022.
- Its two most popular models, the Model 3 and Model Y, are driving this sales growth, up 29% and 56%, respectively.
- Tesla sold 17,526 Model 3 copies and 28,833 Model Y copies, showing that the slightly larger crossover is still the most popular body style in the United States.
- Other luxury brands, while still growing, just couldn't keep up with Tesla's pace.