Tesla Model 3 tops European car sales, becomes first EV to outsell ICE cars

Tesla Model 3 electric sedan has become the first electric vehicle to outsell its combustion engine counterparts after becoming the top-selling vehicle in Europe last month. The Model 3 EV beat out cars such as Renault Clio and Volkswagen Golf, as per data from research firm Jato Dynamics.

In another milestone, Model 3 from Tesla has become the first car made outside of Europe to have claimed the top spot in the region's sales charts. The sales performance of the EV in Europe partly reflects the EV company's intense end-of-quarter sales push.

Model 3 EV taking the monthly sales crown in Europe also marks a great achievement for the electric vehicle industry, hinting that the automotive industry is accelerating its pivot away from combustion engines. Governments in Europe are offering generous incentives to woo buyers to trade in their combustion-engine cars with fully electric or plug-in hybrid vehicles, accounting for 23% of the market in September, nearly doubling from 2020.

This development for the European auto sales market comes against a gloomy backdrop of global semiconductor shortage that has been crimping production and delaying shipments to customers. “The growing popularity of EVs is encouraging, but sales are not yet strong enough to offset the big declines seen across other segments," research firm Jato said.

Tesla shipped 24,591 Model 3 EVs to customers in September, a 58% increase from last year. The carmaker recently posted its biggest quarterly net earnings in its history. It was the carmaker's record revenue for the fifth consecutive quarter for the July to September period on the back of record deliveries. In fact, the automaker achieved the feat despite the ongoing coronavirus pandemic and global supply chain issues.

Tesla's record deliveries and revenue were supported by a production build-up at its Chinese factory, where it builds Model 3 and Model Y EVs.

(with inputs from Bloomberg)