The global light vehicle industry might be growing at a healthy pace of 4.8 percent but it seems like electric vehicle sales are the real boom nowadays. Although they are still a minimal percentage of car sales in most countries, the number of electric vehicles on the streets has rocketed between 2015 and 2016. By the end of that year, there were over 2 million of these cars circulating, representing an increase of 60 percent compared to 2015 according to the International Energy Agency.
The world seems to be betting on the growth of cleaner vehicle technologies and that reflects on the steady growth of companies like Tesla. After a free fall of its stock price from a peak of US$383 to US$308 between June and July, the company is gradually recovering and its stock price is now at US$356. But rather than just focusing on monetary results, let us look at how Tesla is doing in its Model 3 sales.
The new Tesla model is barely about to hit the shelves. Yet, it has accumulated a total of 455,000 pre-orders since the company opened the registry on March 31st, 2016 with a downpayment of US$1,000. That number equals almost 25 percent of the current electric vehicle park and it is 900 percent more than the total sales of the Model S in 2016 according to EV Volumes. So far, the company reports only 63,000 cancellations and orders keep coming at a 1,800 rate per day without a penny spent on advertising according to Tesla’s CEO, Elon Musk.
Competition is changing and old automakers know it. In an interview published by Volkswagen, Herbert Diess, the brand’s chief executive stated that regarding competition for Volkswagen: “In the old world it is Toyota, Hyundai, and the French carmakers. In the new world it is Tesla.”
The data used in this article was sourced from Automotive News, Expansión, The Guardian, the International Energy Agency and Reuters.