Tesla Model 3 is ‘outselling all of its gas-powered equivalents combined’

With the release of Tesla’s second quarter 2019 results, the automaker claimed that Model 3 is not only still the best-selling car in its segment but also “outselling all of its gas-powered equivalents combined.”

Since its launch 2 years ago and after a difficult production ramp, Model 3 has often taken the top-selling position in its segment in the US.

Today, Tesla claims that it’s still the case in the US for the second quarter of the year:

“In Q2, Model 3 deliveries reached an all-time record of 77,634. Not only was Model 3 once again the best-selling premium vehicle in the US, outselling all of its gas-powered equivalents combined, this product also gained traction in other markets.”

In comparison, BMW delivered 17,225 3 and 4-Series vehicles in the US during the second quarter and Mercedes-Benz delivered 12,335 C-Class vehicles in the US during the same period.

While Tesla is comparing itself to other premium automakers, the automaker says that its addressable market is bigger based on the mix of trade-ins including more non-premium cars than anticipated:

“As we stated previously, more than 60% of Model 3 trade-ins are non-premium brands, indicating a larger total addressable market for this product than initially expected. Now that all current variants of Model 3 are available across North America, Europe and Asia, we are gaining insight into preferred customer trim mix.”

Tesla added about the trim mix of the Model 3:

“During the quarter, a majority of orders continued to be for a long-range battery option and the Model 3 average selling price (ASP) was stable at approximately $50,000. At the same time, manufacturing costs continued to decline.”

The automaker noted in its second quarter 2019 results that its automotive gross margin was 18.9% during the period.

Over the last quarter, Tesla also says that it improved Model 3 production:

“The production rate of Model 3 continued to improve gradually throughout the quarter, breaking a monthly record in May and then again in June. All manufacturing equipment in Fremont has demonstrated capability of a 7,000 Model 3 vehicles per week run rate, which we continue to work to increase. We aim to produce 10,000 total vehicles of all models per week by the end of 2019.”

Tesla also noted progress to achieve Model 3 production at its Shanghai Gigafactory in China by the end of the year.