It’s hard to not be excited about all the Model 3 news coming out of Tesla’s pressroom right now. They are proof that people want EVs, and that we are at a tipping point.

Here’s what we’ve discussing over the proverbial water cooler lately.

In July, the Tesla Model 3 was the top selling car in its market

We usually compare electric vehicles to other electric vehicles. It makes sense: the same customer is usually comparing the price and features of a Bolt to an I-Pace to a Tesla. Usually, the same person is not considering both an EV and a conventional ICE car. Until now…

According to CleanTechnica and GoodCarBadCar, last month the Model 3 completely outsold all other vehicles in the Small & Midsize Luxury Cars segment. That includes gas-powered vehicles from BMW, Audi, Mercedes, and Lexus. Tesla sold 13,500 Model 3 cars, compared to the segment runner-up, BMW with 9,502 sales for its entire 2, 3, 4, and 5 Series models.

Those 13,500 sales are enough to rank the Model 3 Eighth among the Top 10 Highest Selling Cars in America in July. That’s right, on the same list with Corollas, Accords, and Fusions.

We’re still trying to wrap our heads around this.

Tesla’s production rates are catching up to demand

The delays in Tesla’s production of the Model 3 are almost legendary. Over 400,000 people put in reservations for a new car, and many have not seen them yet.

There are two reasons why Model 3 production has been slow: scalability and supply chain. Scalability simply comes down to the learning curve that comes from introducing a new product that’s in high demand. The Model 3 production lines have had to calibrate automated systems and figure out new workflows. The supply chain has been the biggest production bottleneck. For the Model 3, Tesla chose to use a nonstandard lithium battery, produced by its battery Gigafactory in Nevada. Delays at that single battery factory hold up the entire Model 3 production.

The Gigafactory, however, will help Tesla avoid shortages in the long run. This week CleanTechnica reported that there might be battery shortages for companies like BMW, VW, and Nissan. Despite the difficulties that Tesla has had with its in-house battery supply, its production increase regardless of the battery shortage faced by the other brands who depend on the same outside battery supplier.

Now that Tesla is on schedule and producing 5,000 Model 3s per week, it’s gaining ground on its reservations and delivering thousands of cars to happy customers in North America!

So what’s next?

Who knows? Tesla might go private or might add more games to its software, but either way, we’re excited for the next innovation.

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