Tesla’s sales slump in Australia has deepened, with the electric car maker recording just 1,592 deliveries in February—down more than 70% compared to the same month last year. The drop follows a dismal January, when the company sold only 739 vehicles, its worst monthly result in years.
The sharp decline comes amid a broader slowdown in demand for electric vehicles and growing controversy surrounding Tesla CEO Elon Musk. While Tesla sales have historically fluctuated due to the timing of large shipments, the latest figures reflect a sustained downward trend. Over the past six months, Tesla has averaged around 2,100 sales per month in Australia—down from 3,500 per month in the six months leading up to August 2024.
The downturn is not limited to Australia. Tesla has faced a steep drop in sales globally, particularly in Europe, where its vehicle deliveries fell by 50% in January. The decline has put the company’s lucrative emissions credit business at risk, as Tesla relies on selling credits to other automakers to meet European Union emissions targets.
Tesla’s troubles in Europe have been exacerbated by Musk’s political statements, which have alienated some customers. His public support for far-right parties and controversial remarks about Germany’s past have led to boycotts and protests at Tesla dealerships. In Germany, where overall EV sales surged in January, Tesla sales plummeted by 60%. Similar declines have been recorded in Norway and France.
In the U.S., Tesla is facing mounting competition from rivals such as Ford and Polestar, which are offering aggressive incentives to lure customers away. The political backlash against Musk has also intensified, with activists protesting his close ties to President Donald Trump and the administration’s recent cost-cutting measures.
Tesla’s financial position has suffered alongside its declining sales. The company’s stock has fallen more than 40% from its December peak, wiping $111 billion from Musk’s net worth. Analysts warn that tariffs on Canadian, Mexican, and Chinese imports could further erode Tesla’s margins, given its reliance on global supply chains.
In Australia, there is some hope that the arrival of an updated Tesla Model Y, which is being showcased at the Everything Electric show in Sydney, could help boost demand.
