Consumer Discretionary Thanks To Tesla Motors, Inc. (NASDAQ:TSLA)The US Is On Track On Long Term EV Goals

Thanks To Tesla Motors, Inc. (NASDAQ:TSLA)The US Is On Track On Long Term EV Goals

Published By Blake Audett at October 18, 2016 10:02 am

Tesla Motors Inc (NASDAQ:TSLA) with its ambitious goals to replace environment damaging gasoline powered vehicles with clean energy electric vehicles is serving as a major catalyst to the government’s goals as well, media reports claim.

According to Electrek, up until September, the US officially had more than 500,000 clean energy vehicles on the road including all categories of plug-in vehicles: battery electric vehicles as well as hybrid vehicles – a trend majorly catalyzed by Tesla’s all-electric Model S sedan and more recently, the premium Model X crossover SUV.

 The website notes, quoting numbers from ‘Electric Cars Report’ that 512,137 alternate energy vehicles have been sold in the US through September. September alone was a record month for electric vehicle sales with 16,069 new vehicles making way into garages, up from the prior record of 14,973 vehicles set in the month prior.

The government initially set the one-million clean energy vehicles goal for last year which after failing was shifted to 2020 – a mark that now looks conservative.

Although mainstream automakers like Toyota, GM, and Nissan set the initial pace for clean energy vehicles with offerings like Prius, Chevy Volt and Leaf, Tesla beginning in mid-2012, turned tables around with the launch of its premium Model S sedan.

Despite retailing at well over a $70,000, the sedan has seen sales spiking in double digit figures consistently over the past years shooting Tesla’s top line growth and swinging overall vehicle sales numbers in the country closer to the government’s target.

One might imagine, at just over 500,000 vehicles, the goal still seems far away, but Electrek points to the growing interest in the mass market for electric vehicles – expected to significantly spike sales for these vehicles.

The Nissan Leaf and the Chevy Volt can be considered the lone warriors in the space for now, but that is about to change very soon. Tesla is rolling out its mass-market Model 3 sedan next year, and if it is to come anywhere near the success that the Model S has had, the sales volumes could be a huge catalyst for the government’s one million EVs goal.

And then, of course, there is the entire competition-phenomena that Tesla is pulling along with it in the mass market, with GM jumping in on the challenge. GM has said it will begin production for a mid-priced all-electric Chevy Bolt with a range comparable to the Model 3 this year.

Regardless of whether the Bolt beats the Model 3 or does not, one thing is certain: it is a win-win for the industry at large as well as US officials.