Elon Musk may be thriving in the US as Donald Trump’s inauguration nears, but Tesla’s fortunes in Australia are facing challenges. Australian Tesla sales drop again in November, marking the brand’s first annual decline. According to the Electric Vehicle Council, Tesla recorded 2,540 sales for the month — a 35.5% drop compared to November 2023 — contributing to a 20.9% year-to-date decline.
Globally, Tesla remains ahead of its key competitor, Chinese automaker BYD, holding 18.5% of the market compared to BYD’s 17.5%. However, the Australian electric vehicle (EV) sector is evolving rapidly, and Tesla appears caught amid growing competition and limited new product launches, especially in the affordable segment.
Mike Costello, corporate affairs manager at Cox Automotive, highlights the pressure Tesla faces. “There’s a lot more competition now, and Tesla hasn’t released much that’s new or affordable,” he says.
This competition includes mainstream brands like Ford, Toyota, Subaru, Kia, MG, and Hyundai, as well as emerging Chinese EV manufacturers such as BYD, Deepal, Leapmotor, Xpeng, Zeekr, and Geely. The surge in hybrid vehicle sales, led by Toyota, has also provided buyers with a more cost-effective alternative to EVs.
While EV sales in Australia are up 3.1% for the first 11 months of 2024 — an increase of 2,514 units — Tesla’s dominance has slipped. Of the 82,960 EVs sold so far this year, 42% (34,754) were Teslas. Much of the EV sector’s growth stems from BYD, which sold 13,389 vehicles, up 2,414 from last year. Kia and BMW have also gained ground, with BMW reporting 30% of its sales as fully electric.
Another factor affecting Tesla’s image is what some call the “Musk factor.” Elon Musk’s polarizing persona has turned off some buyers, a sentiment reflected in bumper stickers like “we bought it before he revealed his dark side” and “make this car less embarrassing again.”
However, Tesla’s current position still holds significant strength. Costello points out that Tesla’s lineup — consisting of just two models, the Model 3 sedan and Model Y SUV — is relatively limited and aging.
Despite this, both vehicles perform strongly in their segments. The Model 3, priced around $60,000, remains the top-selling mid-sized car, surpassing the Toyota Camry in 2024 and revitalizing a segment that many automakers, such as Subaru and Ford, had abandoned.
Meanwhile, Model Y sales have drop 29.3% this year, yet its 19,392 units still far surpass rivals in the $60,000+ SUV category, like the Lexus NX, which sold 5,619. Among mid-sized SUVs, the Model Y ranks fifth overall, trailing the Toyota RAV4, Mitsubishi Outlander, Mazda CX-5, and Kia Sportage, but outperforming models like the Hyundai Tucson and Subaru Forester.
The increasing success of hybrid SUVs has amplified competition, though Tesla’s Model Y is expected to receive an update in 2025.
