Tesla Sees Major Rebound in Australia, Despite Global Struggles
Key Highlights:
- Tesla sold 3,897 vehicles in Australia in May, driven by strong Model Y demand.
- Sales surged 675% from April, though year-over-year growth was just 9.3%.
- Globally, Tesla continues to battle falling demand, intensified competition, and brand image challenges.
Tesla may be grappling with declining sales across the U.S. and Europe, but May brought a welcome rebound in Australia, according to F.M.I.E Sources. The EV giant reported its strongest monthly sales in nearly a year, with 3,897 units sold, thanks largely to a revamped version of its Model Y compact SUV.
The Model Y alone saw a 122.5% year-over-year increase in Australia, even as Model 3 sales continued to slide. Overall, Tesla’s total deliveries rose just 9.3% from May 2023 but spiked dramatically—up over 675%—compared to April, when the automaker sold only 500 vehicles in the region.
Data from the Australian Electric Vehicle Council—the exclusive source for Tesla and Polestar sales following their departure from the Federal Chamber of Automotive Industries (FCAI)—confirmed the surge. However, despite the rebound, Tesla’s year-to-date sales remain down 48.2% compared to the same period in 2023.
“Tesla’s strong sales growth in Australia this May is an encouraging sign, driven almost entirely by demand for the updated Model Y. But globally, Tesla is still facing headwinds,” said Liz Lee, Associate Director at technology market research firm Counterpoint Research, in comments to F.M.I.E Sources.
According to Counterpoint’s EV Sales Tracker, Tesla’s global sales were down 13% year-over-year in Q1, highlighting that while the Australian recovery is significant locally, it does not yet indicate a global turnaround.
Reputational Risks and Political Fallout
Tesla’s sales slump in major markets has been worsened by increasing competition and CEO Elon Musk’s involvement in political controversies. In Australia, earlier declines in sales were linked to public backlash and protests tied to Musk’s affiliations with political figures such as former U.S. President Donald Trump and far-right movements in Europe.
In contrast to Australia’s rebound, Tesla’s U.S. sales fell 11% in May year-over-year, and sales in Spain, Portugal, Denmark, and Sweden also saw steep declines, according to F.M.I.E Sources.
However, not all regions reported losses. Norway saw a 213% year-over-year increase, while Turkey recorded a record-breaking 1,545 sales in May—both attributed again to strong demand for the Model Y.
Following a press conference last week, Trump confirmed Musk’s official departure from his federal advisory role, although he would remain as a consultant. F.M.I.E Sources quoted analyst Dan Ives of Wedbush, who called Musk’s return to Tesla full-time “the best possible news investors could have heard,” particularly ahead of the company’s much-anticipated robotaxi launch.
Tesla vs. BYD: The Battle Intensifies
Tesla’s global expansion is being challenged by Chinese EV powerhouse BYD, which has aggressively pushed into overseas markets. According to F.M.I.E Sources, BYD outsold Tesla in Europe for the first time in April and is rapidly gaining ground with competitive pricing and hybrid models.
While Tesla sells only fully electric vehicles, BYD’s lineup includes both battery EVs and hybrids—giving it a wider appeal, particularly in markets with concerns about EV range.
In a rare victory, Tesla beat BYD in May sales in Australia, with 3,897 vehicles sold versus BYD’s 3,225, based on current data.
The FCAI told F.M.I.E Sources that sales of hybrids and plug-in hybrids rose 6% and 118%, respectively, year-over-year in May. FCAI Chief Executive Tony Weber noted that range anxiety is still a key issue in Australia, making hybrids an attractive option for many buyers.
Looking Forward: Eyes on Emerging Markets
Counterpoint’s Liz Lee advised that Tesla should look beyond traditional markets and focus on emerging regions like India, Southeast Asia, and Latin America. These markets are ramping up EV infrastructure and offering incentives, creating opportunities for early movers.
As part of its global strategy, Tesla recently confirmed it is leasing a warehouse in Mumbai, signaling renewed commitment to India and setting the stage for long-awaited expansion.
Tesla stock closed up 0.5% on Tuesday, though it remains down about 15% year-to-date.