Electric Vehicles

Tesla Secures Top Three Best-Selling EV Spots in U.S. for 2018

Today, I’d like to revisit a topic – and company – that is disrupting transportation as we know it…

Nearly six years ago, I wrote about Tesla (Nasdaq: TSLA). Here’s what I said:

Investors who want a pure play in the EV space might do well to consider investing in a few shares of Tesla Motors.

Given the enthusiasm for the company’s cars and its rapid growth rate, you might be able to afford one yourself in a few years just by selling the shares you purchase now.

When I wrote that, Tesla shares were selling in the $40 range. Did you buy them? If so, good for you.

Today, Tesla shares are trading for roughly $300. If you still own them, you’re sitting on a handsome gain.

Despite the continual drama the company finds itself in the middle of (laying off 7% of its workforce, co-founder Elon Musk proposing to take the company private, falling short of production goals, etc.), Tesla continues to innovate, promise and build.

Last year, Tesla produced a total 26,100 Model X SUVs and 25,745 Model S sedans, snagging the No. 2 and No. 3 spots, respectively, for units of EVs sold in the U.S.

What’s more, Tesla’s newest vehicle, the Model 3, ranked No. 1 at 139,782 units sold… meaning Tesla produced nearly 39% of the total EVs sold in the U.S. in 2018.

Despite initial hiccups with production due to engineering problems and delays, Tesla is now producing nearly 1,000 Model 3s per day. And the promised $35,000 base model – though currently said to be “impossible” – is expected to debut sometime this year.

Now, Musk has been hinting about the new Model Y for some time.

This electric crossover SUV is expected to have similar performance and mileage specs to the Model 3. The prototype is expected to be unveiled between now and the middle of March 2019.

Tesla also announced its plans to build a Gigafactory in Shanghai, where the Model 3 – and possibly the Model Y – will be produced.

Tesla’s plans also include an electric semitruck and an electric pickup truck.

It’s all good news for Tesla. The company finally had a profitable quarter in 2018 – its first in two years and only its third ever.

In the EV space, Tesla’s Model 3, Model X and Model S are the top three best-selling EVs in the U.S.

So I expect Tesla to maintain this position for some time. Other traditional automobile manufacturers simply can’t make the switch to EVs fast enough.

Are shares still a bargain today? I believe they are. And when I quote myself again six years from now, you’ll wish you had listened.

Tesla is a pioneering game changer in the world of EVs. I’ll continue to cover its successes – and setbacks – as the EV space takes over.

Good investing,