Tesla’s sales in Australia experienced a significant downturn in 2025, with the company’s overall deliveries falling by nearly a quarter compared to the previous year. Despite the Model Y’s continued success as Tesla’s top-selling vehicle, the sharp decline in Model 3 sales contributed heavily to the brand’s overall performance.
According to the Electric Vehicle Council’s latest annual report, Tesla delivered 28,856 vehicles in Australia in 2025, marking a 24.8% decrease from the 38,347 units sold in 2024. The Model Y accounted for more than three-quarters of these sales, underscoring its dominance in Tesla’s lineup.
Model Y Dominates, Model 3 Falters
In 2025, the Model Y represented a staggering 77.1% of Tesla’s Australian sales, with 22,239 units sold. This marks a notable increase from 2024, when the Model Y comprised 55.4% of Tesla’s total sales. In stark contrast, the Model 3 saw its sales plummet by 61.3%, with only 6,617 units sold compared to 17,094 in the previous year.
Tesla 2025 Sales in Australia at a Glance:
- Total: 28,856 (-24.8%)
- Model Y: 22,239 (+4.6%)
- Model 3: 6,617 (-61.3%)
The Model Y’s modest growth of 4.6% was insufficient to counterbalance the substantial decline in Model 3 sales, leaving Tesla’s overall annual total significantly lower than in 2024. This trend mirrors Tesla’s global sales performance, which also saw a decline.
Global Context and Competitive Landscape
Globally, Tesla announced an expected total of 1,640,752 vehicle sales for 2025, down from 1,704,093 in 2024. This 3.7% decline marks the second consecutive year of reduced sales for the electric vehicle giant. The company is poised to lose its status as the world’s leading EV manufacturer to China’s BYD, reflecting a shift in the competitive landscape.
Despite the sales downturn, Tesla continues to lead the industry in autonomous driving technology, which was introduced across Australia late last year. This technological edge remains a crucial differentiator for the brand amidst increasing competition.
Monthly and Regional Breakdown
Tesla’s sales in Australia were not evenly distributed throughout the year, with several peaks corresponding to large deliveries and reporting practices. The most significant sales months in 2025 were September, June, and May, with 4,663, 4,589, and 3,897 units sold, respectively.
Breakdown of Tesla Sales by State or Territory:
- NSW: 8,638
- Victoria: 8,595
- Queensland: 5,879
- WA: 3,089
- SA: 1,334
- ACT: 1,011
- Tasmania: 247
- NT: 63
Even in December, Tesla’s sales pattern persisted, with the Model Y accounting for approximately 77% of the month’s volume. The Model Y saw a 7.4% increase in December sales year-on-year, while the Model 3’s sales fell by 66.1%.
Looking Ahead
As Tesla navigates these challenges, the company is likely to focus on bolstering its Model 3 sales while maintaining the momentum of the Model Y. The brand’s continued investment in autonomous technology and potential new model introductions could play a pivotal role in regaining its market position.
With the global electric vehicle market becoming increasingly competitive, Tesla’s ability to adapt and innovate will be crucial in determining its future success. The coming years will reveal whether the company can reclaim its status as the leading EV manufacturer or if new players will continue to disrupt the market.
