Tesla’s Australian Sales Plunge to Lowest in Two Years

Tesla’s sales slump has continued into 2025, with the electric car giant experiencing a sharp decline in Australian deliveries. New data from the Electric Vehicle Council reveals that Tesla sold 739 cars in Australia in January 2025. This marks a significant 33% drop from the 1107 deliveries recorded in January 2024.

Last year, the Tesla Model 3, the second-best-selling EV in Australia, took the biggest hit, plummeting 62% year-on-year. In contrast, the Model Y – the country’s best-selling electric vehicle in 2024 – defied the downward trend, posting a 21% increase with 465 units sold.

➡️MORE: Home charging guide for Tesla Model 3 & Y

Global Sales Continue to Decline

January is typically a slow month for new car sales, but Tesla’s numbers have reached their lowest point in Australia since July 2022, when supply chain disruptions caused by COVID-19 led to just four reported deliveries.

This local downturn follows Tesla’s first-ever global sales decline in 2024, with Australian sales down 17% for the year. The downward trajectory has continued into 2025, with Tesla’s European sales in January falling 13% overall. France led the declines with a staggering 63% drop, while Germany followed with a 41% decrease.

➡️MORE: Use our charging calculator to know the time and cost of charging your EV.

Elon Musk’s Controversies

Musk’s increasing involvement in global politics has sparked controversy, which some analysts suggest may impact consumer sentiment.

After publicly endorsing Germany’s far-right ‘Alternative for Germany’ party, Musk made global headlines for performing a Nazi salute at former U.S. President Donald Trump’s 2025 inauguration. Reports also indicate Musk contributed more than $US288 million ($AU463.25 million) to Trump’s campaign.

What To Blame?

However, it remains unclear whether Tesla’s sales decline is directly linked to Musk’s political views or if other factors, such as an aging vehicle lineup and reduced EV subsidies in some markets, are playing a larger role.

Despite these setbacks, the Model Y’s resilience in Australia suggests that demand for electric SUVs remains strong. With a refreshed version set to arrive in mid-2025, Tesla hopes its fortunes turn around in the coming months.