Tesla’s Model Y is Europe's best-selling premium midsize SUV,  beating the likes of the Mercedes-Benz GLC and could surpass market leader Audi A3.

The electric Model Y crossover is supplied both by Tesla's new plant near Berlin and its facility in Shanghai, China, and has been rising up the sales rankings since its rollout across Europe last year, said Europe Automotive News.

The Model Y was Norway's top seller in the first six months while in June it topped Sweden's sales charts and was number two overall in the UK.

The Model Y recorded 41,851 sales in the first six months, beating the GLC (40,554), according to automotive analysis company Dataforce.  

The BMW X3 was third with 31,138 and the Volvo XC60 fourth with 27,836 sales.

Meanwhile, Tesla CEO Elon Musk told shareholders that the EV maker will have an annual run rate of 2 million vehicles by the end of this year and will continue to build new factories to join the four it currently has in operation.

Musk said Tesla could announce a new factory location as soon as this year, according to Europe Automotive News.

Tesla is targeting an annual output of 20 million vehicles a year, and Musk said that would require 10 or 12 “gigafactories” with the capacity of 1.5 to 2 million vehicles each. 

Last year Tesla production was just over 1 million vehicles, but Musk said that the current run rate was 1.5 million vehicles from four factories: Fremont, California; Shanghai; Berlin-Brandenburg, Germany; and Austin, Texas.

“If all goes as planned, we will be exiting 2022 at a 2 million annual run rate,” Musk said, adding that production in Tesla’s two newest factories, in Germany and Texas, was facing “10,000” small problems that were being solved “one at a time”,  Europe Automotive News reported.