Australia is the latest market to report a major decline in Tesla sales for January 2025, and this time, the automaker can’t attribute it to the Model Y transition.
Earlier this week, reports from European markets revealed a sharp drop in Tesla sales, with figures showing that the automaker sold nearly half as many vehicles in January 2025 compared to the same period in 2024.
Industry analysts point to two key factors behind this decline:
- Elon Musk’s involvement in political controversies and the spread of misinformation on social media, which has pushed some buyers away from Tesla.
- The transition to a redesigned Model Y, which has impacted production and sales.
Now, Australia’s car sales data for January 2025 highlights similar challenges for Tesla. The automaker delivered only 739 vehicles, marking a 33% drop year-over-year.
However, the Model Y isn’t to blame, as its deliveries actually increased by 20%. Instead, the decline is largely due to the Model 3, Tesla’s most affordable vehicle, which saw a staggering 63% drop in sales.
This downward trend has been ongoing for Tesla in Australia. In January 2023, the company delivered over 2,000 vehicles, but that number has now dwindled to just a few hundred. Tesla’s sales in the country also declined by 17% throughout 2024.
