Tesla Sales Crash Hard in Oz

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We’ve reported on Tesla sales dropping in China, in Europe, and in the US recently, but now we have data out of Australia, and it shows Tesla crashing hard there. Reportedly, Tesla sales dropped 72% in Australia last month.

In the US and Europe, one of the most common explanations for the sales hit is that people don’t want to support Elon Musk after all of his far-right political engagement, Nazi-looking hand motions, and disruption of the US government and alliances in Europe. In China, those matters seem unlikely to matter, so the reasons for dropping sales are conjectured to be increasing competition and buyers waiting on the new Model Y (explanations also used for the US and Europe). But … Australia?

Are Australians similarly upset about Musk’s political engagement? Are buyers waiting on the new Model Y? Are shipments delayed due to production changes for the new Model Y? All of the above?

The problem with the new Model Y explanation is that while Tesla’s overall sales were down 72% in Australia, its Model 3 sales were down 81%!

The Guardian does point to the apparent Nazi salutes as a potential turning point. Though, the outlet does bring up other possibilities. “Tesla’s sliding popularity in Australia comes amid several other trends in the market such as the move away from pure battery electric cars in favour of hybrid vehicles; the increasing availability of cheaper Chinese rivals; and the broader waning appetite for cars that saw Australians buy 10,000 fewer vehicles in February than the same month in 2024.”

The problem is that Tesla sales have been dropping more than sales of competitors in their class.

Those “I BOUGHT THIS BEFORE ELON WENT CRAZY” bumper stickers are apparently spreading in Australia as well. Here in Florida, I just saw two in the past week. It’ll be interesting to see how abundant they get. Interestingly, though, the Nazi salutes again seemed to mark a turning point for people — or a breaking point. “Matthew Hiller, the owner of Mad Puffer Stickers, said demand for his stickers had been strong since the US election but ‘has been nothing short of incredible’ since the salutes.” Interesting. If those kinds of buying habits are also being seen on the flip side when it comes to Tesla orders….

“I’m seeing sustained sales of 500+ a day from mostly America, but one fifth of those are international orders. Yesterday I hit 700 orders,” Hiller told Guardian Australia. He has also been seeing an increase in orders from Australia. So, again, perhaps the massive sales crash is linked to Elon Musk’s political nonsense.

The next few months will tell us a lot. Will sales rebound with the new Model Y’s arrival, indicating all of these other concerns were a mirage? Or will sales remain lower than in previous years even with an improved, upgraded version of the best selling car in the world just launching? Whatever we do see, it appears we should see it in markets around the world, as they all seem to be trending together when it comes to Tesla.