News
Tesla dominates January BEV sales in the United States with S3XY lineup all in Top 10
Tesla’s domination of the United States electric vehicle sector continues Tesla’s Model Y, Model 3, and Model S claimed the top three spots of January’s U.S. BEV registrations, with its top two models combining for well over 60 percent of the total electric vehicle sales during 2022’s first month. The Model X was ninth on the January list.
Around 50,380 electric vehicles made their way to customers in the United States in January, according to new data from Experian and Automotive News. The U.S. has lagged behind other countries in terms of electric vehicle adoption, but there is still plenty of data to be encouraged about. While automakers like Ford, Nissan, Hyundai, Volkswagen, Kia, and others are adopting electric powertrains and aligning with the long-standing mission of accelerating the world’s transition to sustainable energy, there is still only one king of the hill in the U.S., and it is Tesla.
The Model Y was the nation’s best-selling EV in January, with 18,549 units sold. The Model 3 won a respectable silver medal, while the Model S, Tesla’s flagship sedan, accumulated 3,903 sales. The Model Y accounted for 36.8 percent of all BEV sales in the United States, while the Model 3 made up 27 percent. Tesla’s two mass-market vehicles combined for around 63.8 percent of the total electric vehicle sales in January, an impressive statistic considering the wide array of competitive options now available to consumers.
The Model Y and Model 3 are Tesla’s mass-market vehicles and were essentially the two cars that made EVs a “household” name. While many models came before them, the Model 3 was the first electric vehicle to disrupt the traditional combustion engine market. Before Tesla alleviated itself from the trenches of “production hell,” the Model 3 was the most-ideal combination of range, performance, and affordability offered on the market. Then, Tesla released the Model Y, and CEO Elon Musk predicted it would eventually outsell the Model 3 and the rest of the vehicles on the market.
Credit: Tesla
“I’d say more likely than not that in 2022 Model Y is the best-selling car or truck of any kind in the world,” Musk said during the Q1 2021 Earnings Call last year. While it has beat out every other electrified model on the market, the Model Y’s place on a global scale by year’s end may be atop the best-seller’s list. However, that day remains to be seen.
The Model X did make the list, placing ninth with 1,106 vehicles. Tesla has not completed many deliveries of its new, updated version of its SUV. Delivery dates are still being adjusted somewhat regularly, but Musk admitted the Model X ramp was one of Tesla’s biggest ball drops in recent history.
Here is the complete list of sales, courtesy of our friends at InsideEVs.
- Tesla Model Y – 18,549 (36.8% of all BEVs)
- Tesla Model 3 – 13,604 (27% of all BEVs)
- Tesla Model S – 3,903
- Ford Mustang Mach-E – 2,781
- Nissan LEAF – 1,479
- Hyundai Ioniq 5 – 1,253
- Volkswagen ID.4 – 1,153
- Kia Niro EV – 1,146
- Tesla Model X – 1,106
- Porsche Taycan (all versions) – 972
- other – 4,438
- Total – 50,384
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
