Tesla experienced its first annual sales decline in Australia in 2024, with deliveries dropping 17% despite significant price reductions of up to $9,500. Data from the Electric Vehicle Council (EVC) revealed 38,347 Tesla cars delivered in 2024, down from 46,120 in 2023, marking a stark contrast to the global decline of just 1%. However, the 2024 figures remain significantly higher than the 19,594 units sold in 2022.
Despite a 63% year-on-year increase in December deliveries—reaching 3,593 units—Tesla’s Australian sales faced consecutive monthly declines for much of the year. The downturn in Tesla sales outpaced the broader automotive market, which is expected to match its 2023 record across all vehicle types despite economic challenges. While the Australian electric vehicle (EV) market grew 3.1% year-to-date by November 2024, Tesla’s exclusion would have shown a more robust 32% increase.
Tesla’s share of the Australian EV market is anticipated to drop from 55% to approximately 40% based on November data, although the company is expected to retain its position as the top EV seller. The Model Y SUV saw a steep 26% sales decline, from 28,769 units in 2023 to 21,253 in 2024. The Model 3 sedan performed relatively better, slipping by only 1.5%, from 17,351 to 17,094, despite receiving an upgrade early in the year.
Tesla implemented aggressive price cuts in 2024, reducing the Model Y Rear-Wheel Drive by $9,500 and the entry-level Model 3 by $7,000 within two months. These measures are expected to bolster demand once the updated Model Y—featuring refreshed styling and an overhauled interior—is launched locally, likely two to three months after its global debut.
The sales decline comes as Tesla shifted its reporting to the EVC after exiting the Federal Chamber of Automotive Industries (FCAI) in early 2024. The move followed Tesla’s criticism of the FCAI’s claims about the impact of new-car emissions rules on prices. The FCAI reported 46,116 Tesla sales for 2023, slightly below the EVC’s figure of 46,120, due to differing tracking methodologies.
Tesla’s 2024 performance remains significantly higher than rivals such as Polestar, which recorded only 1,713 deliveries, down from 2,457 in 2023. The decline in Tesla’s market dominance underscores the shifting dynamics within Australia’s EV sector as competitors and economic factors influence the landscape.
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