Tesla sales tumble down under

Tesla is in a spot of bother. 

Sales of Tesla electric vehicles in Australia, namely the Model Y SUV and Model 3 sedan, have plummeted in 2025, down a whopping 72 per cent for the month of February.

While that figure betters the brand’s shocking January result in – just 739 units were delivered in Australia – It sold just 1592 vehicles last month, compared to February 2024’s bumper 5665 units, mirroring a global trend that have seen Tesla’s share price plunge 30 per cent in the past month, from just under $400 to $272 today.

According to Jato Dynamics, Tesla sales dropped 45 per cent in across Europe in January 2025 and while the February numbers for Europe are still rolling in, the poor sales performance in the EU looks grim, given sales of electric vehicles increased overall in Europe.

Sales of Tesla vehicles in Germany and France had the largest falls, dropping by around 60 per cent respectively in January, and the electric car maker’s biggest market – California – also reported falling Tesla sales.

Even Norway, an EV evangelist market, saw sales of Tesla vehicles drop by more than 40 per cent in January and February 2025, seeing it drop into third place behind Volkswagen and Toyota in terms of EV sales – and Toyota only has one EV, the bZ4X.

There is a bright spot on the horizon for Elon Musk’s car company in Australia, with the facelifted Tesla Model Y ‘Juniper’ set to launch in April 2025.

There’s also the brand’s upcoming compact SUV, the Tesla Model Q, that could provide a shot in the arm for the company’s ailing sales.

Both the updated Model Y and new Model Q are expected to bolster sales for the brand, which has historically recorded see-sawing sales that peak and trough based on export numbers.

Many industry analysts are wary of pinning the brand’s global sales downturn to CEO Elon Musk’s intensifying political involvements, such as working for US president Donald Trump and weighing in on geopolitical issues – particularly in Europe.

Jato senior analyst Felipe Munoz told AP News that “Part of the population is not happy with his views, his political activism.”

Rivals like BYD are rallying and delivering competitive products, which certainly isn’t helping Tesla’s fortunes, but as Morningstar analyst Seth Goldstein explained, Musk is walking a fine line at present.

“Musk thinks he can say anything he wants to and doesn’t think Tesla will suffer any consequences. Tesla was in the sweet spot. Now it has competition,” said Goldstein.

Related: VFacts February: Toyota RAV4 does it again

Related: Tesla sales fell off a cliff in Australia last month

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au