Electric vehicle sales through Carvana Co CVNA continue to accelerate and Tesla Inc TSLA is in the sweet spot.
What Happened: Carvana released on Monday its top 10 bestselling electric vehicles for the first half of the year. The data showed exponential growth in used EV sales on the online car buying platform.
Total Carvana EV unit sales have grown by 786% over the last five years and Tesla topped the list of bestsellers for the third year in a row.
The Model 3 is the most popular used EV on Carvana because of its low prices. Carvana noted that more than half of all shoppers are now considering electric vehicles, but affordability continues to be the main barrier to entry for many potential buyers.
Tesla lowered prices on its vehicles several times over the last year, which has helped boost sales for the EV maker and drive better-than-expected delivery numbers. The Elon Musk-led company continued to cut prices on its vehicles just last week.
As the prices of new Tesla vehicles come down, so does the resale value, which is making the Model 3 all the more popular on Carvana, but the Model 3 isn't the only model. Tesla represents three of the top six bestselling EVs on the platform with the Model Y coming in fifth and the Model S taking the sixth spot.
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Why It Matters: Tesla has more in common with Carvana than other automakers. Unlike its competitors, Tesla doesn't use dealerships and instead sells its vehicles directly to the consumer.
Carvana noted that 87% of new EV buyers are open to purchasing vehicles completely online, which bodes well for the online buying and selling platform and is a positive for Tesla.
Tesla is the leader in the EV space and the company has been at it for longer than the competition. There are more Teslas out on the streets than other EVs, prices continue to fall and an online car-buying experience is pretty normal for Tesla, which suggests Tesla may find itself near the top of the best-selling used EVs list for the foreseeable future.
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TSLA Price Action: Tesla shares closed Monday down 1.76% at $269.61, per Benzinga Pro.
Photo: Courtesy of Tesla; Shutterstock
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