Tesla reported a sales rebound in Australia in May, with deliveries reaching their highest level in nearly 12 months. The automaker sold 3,897 vehicles, driven by record sales of its updated Model Y SUV, which surged 122.5% year over year. However, Model 3 sales dropped significantly.
Despite the May rebound, Tesla’s year-to-date sales in Australia remain down 48.2% compared with 2023. Globally, the company faces challenges, with Q1 sales falling 13% year over year, according to Counterpoint Research.
In the U.S., Tesla’s May sales fell 11% from a year earlier, while European markets like Spain, Portugal, Denmark and Sweden also saw declines. However, sales surged in Norway (up 213%) and Turkey (a record 1,545 vehicles).
CEO Elon Musk’s political ties have reportedly hurt Tesla’s brand, with protests affecting sales in Australia earlier this year. Musk recently stepped back from a federal advisory role, a move analysts say could benefit Tesla as it prepares to unveil its robotaxi.
Meanwhile, competition is intensifying, particularly from China’s BYD, which outsold Tesla in Europe in April. In Australia, Tesla narrowly led BYD in May (3,897 vs. 3,225 sales).