Survey Reveals Elon Musk's Influence Turning Australians Away from Tesla

Tesla may dominate Australia's EV market, but a new survey suggests Elon Musk's polarising reputation is driving some buyers away. According to research commissioned by the Australian Automotive Dealers Association (AADA), one in three Australian EV buyers (34%) say Musk makes them less likely to purchase a Tesla.

At the same time, 13% of respondents said Musk made them more likely to buy one, while 54% stated their decision was unaffected by him.

The survey, conducted in November 2024, comes amid a decline in Tesla sales both locally and globally. In Australia, Tesla's market share slipped 16.9% last year, though it still accounts for 42% of the EV segment.

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EV Adoption Stalls as Cost Concerns Grow

While Musk's influence played a role in Tesla's public perception, the survey primarily focused on broader EV buying trends. The findings reveal a slowdown in EV adoption, largely due to affordability concerns.

• EV purchase intent has stagnated at 39%, nearly unchanged from 38% in 2022.
• 55% of respondents believe EVs are too expensive, though this is an improvement from 62% in 2022.
• 64% say rising cost-of-living pressures make them less willing to pay a premium for an EV.
• The average price premium buyers are willing to pay for an EV has dropped to 6%, down from 8% in early 2024.

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AADA CEO James Voortman highlighted that hybrids are currently more attractive than full EVs.

"The research shows that respondents are more likely to consider traditional hybrids (52%) than EVs (39%) or plug-in hybrids (36%), a trend that aligns with current new car sales data," Voortman said.

Declining Confidence in EV Benefits

Public perception of EVs is shifting. The survey found that while 58% of respondents believe EVs are better for the environment, this figure has dropped from 67% in early 2024.

Concerns about resale value and repair costs are also growing, adding to buyer hesitancy. Rural buyers, in particular, remain less likely to consider an EV, largely due to range anxiety and charging infrastructure limitations.

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The research also found that high-income households are nearly twice as likely to consider an EV compared to lower-income households, reinforcing the perception that EVs remain a premium purchase.

Support for Government Policies Shifting

While enthusiasm for EV incentives is cooling—support for government EV subsidies has fallen from 69% to 62%—Australians overwhelmingly back fuel efficiency standards, with 78% of respondents supporting stricter regulations.

The survey helps explain Australia's slowing EV sales growth, which surged 161% in 2023 but slowed to just 4.7% in 2024. With affordability concerns, shifting consumer attitudes, and a polarizing industry leader in the mix, the next phase of EV adoption in Australia may be anything but predictable.

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