Tesla’s Australian Sales Slide Continues Amid Rising Competition
February 2025 electric vehicle (EV) sales data from Australia has revealed a surprising shift in the market, with Tesla experiencing a significant downturn. Recent reports from the Electric Vehicle Council (EVC) along with the federal chamber of automotive industries (FCAI) VFACTS show a 37% slump in EV sales at the beginning of 2025, spearheaded by the once-dominant EV manufacturer.
Lukas Foyle, Contributor at Chasing Cars.
After leading the Australian EV market for over three years, Tesla witnessed a dramatic 72% month-on-month decline. Only 1,592 units were sold in February 2025, compared to 5,665 in February 2024. This continues the troubling trend from the previous month when sales dipped below 1,000 units.
In contrast, BYD has seen a steady increase in sales, with a total of 3,281 units sold in February 2025 – a jump of 1,732 units compared to the same period last year. Polestar also maintains its growth, selling 125 units in February.
Sales Data Comparison
Factors Behind Tesla’s Sales Slowdown
Several factors are likely contributing to Tesla’s sales struggles. The Model Y, which was initially launched in 2022, is now older in EV terms. Despite discounts of $4,000-$8,000, consumer interest has declined, possibly due to limited stock and the anticipation of the new Model Y. The updated ‘Juniper’ Model Y boasts an updated interior and exterior design, along with efficiency and autonomous driving enhancements. However, the 2025 Model Y Launch series costs $73,400 before on-road costs, making it less accessible to some consumers. The new model, expected to launch in May, should experience a sales boost if the Model 3’s performance is any indication.
Growing Competition in the Australian EV Market
The electric mid-size SUV market in Australia is becoming more competitive. The Tesla Model Y is now battling the BYD Sealion 7, Kia EV5, and Toyota bZ4X, among others. With a diverse range of options available, potential Tesla customers are exploring alternatives from different manufacturers. There’s also growing anti-Tesla sentinment, including from some owners, some of whom have resorted to rebadging their vehicles in protest of CEO Elon Musk’s actions.
To maintain its position as the best-selling EV brand in Australia, Tesla needs to improve sales in the coming months. The impact of the new Model Y release on the evolving market situation will undoubtedly be interesting to watch.
