Benzinga | Jan 20, 2021 09:07PM EST

Tesla Sees 63% Rise In California Registrations, Thanks To Model Y

Tesla Inc's (NASDAQ:TSLA) California vehicle registrations spiked 63% in the fourth quarter on a year-over-year basis, largely on account of the automaker's mid-size sports utility vehicle, according to Cross-Sell data, Reuters reported Wednesday.

What Happened: Tesla registrations in California -- the largest market in the United States -- picked up steam as 22,117 vehicles were registered in the three months ended December against 16,200 vehicles in the third quarter, according to Reuters.

The Model Y SUV saw 11,417 registrations in Q4. The registrations for the SUV outpaced those for the Model 3 Sedan at 7,044, a yearly decline of 34%.

Q4 vehicle registrations in 23 states, where data was available, amounted to 44,749 with the Model Y making up for nearly half of that figure, as per Reuters.

Why It Matters: The Elon Musk-led company delivered 499,550 vehicles in 2020, just shy of the 500,000 unit goal set by the CEO.

The automaker has started delivering Model Y vehicles in China, where it has gathered enough orders to exhaust supplies for the first three months of this year.

See Also: Tesla Sells Out Of Q1 Supply Of Model Y In China Just Days After Opening Order Page: Report

Analysts expect the Model Y to disrupt China's luxury auto market and give stiff competition to legacy automakers such as Daimler AG (OTC:DDAIF), Bayerische Motoren Werke AG (OTC:BMWYY), and Volkswagen AG (OTC:VWAGY).

Price Action: Tesla shares closed 0.7% higher at $850.45 on Wednesday and gained 0.17% in the after-hours session.

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