
Tesla electric car sales plunge again in Australia Model 3 down more than 81 per cent
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Comments Image: Riz AkhtarThe plunge in Tesla electric vehicle sales has continued into February, according to the latest official data, with combined sales of the Model Y and Model 3 EVs plunging 71.9 per cent in the month of February, compared to the same month a year earlier.The data from the Electric Vehicle Council shows that Tesla recorded just 1,592 EV sales in February, down from 5,665 for February last year. For the first two months of the year, sales have slumped 66 per cent to 2,331 from 6,772 in 2024.Tesla supporters insist the sales plunge which is also intense in European countries is only the result of inventory levels and customers waiting for refreshed Model Y, and some increased competition.But most analysts and observers also point to the influence that CEO Elon Musk is having on the market because of his partnership with US president Donald Trump and his open support for far right political causes.In Australia, sales of the Model Y fell to 924 in February from 2,072 in February last year. If that were to be the result only of inventory issues and customers waiting for the refreshed Model Y, it does not explain the 81.4 per cent fall in Model 3 sales to just 668 units in February, from 3,593 in the same month of 2024, and 2,671 in February, 2023.It could also be that the Model 3 is simply past its use-by date, particularly with the arrival of competition from China such as the BYD Seal.Source: Electric Vehicle Council.Polestar is also seeing sales of its Polestar 2 electric fasts-back once seen as a rival to the M3 slump sharply, down to just 36 from 112 a year earlier.But Polestar is also rolling out a number of new models, and the EVC data reveals that its overall sales are up 11.6 per cent over the same month a year earlier. This has been driven by the newly launched Polestar 4 has achieved 83 sales, taking its year to date total to 144, while the more expensive Polestar 3 achieved just 6 sales in February, taking its year to date sales to 8.The health of the overall EV market in Australia will be revealed in more detail on Wednesday with the release of data from other car makers via the main car lobby, the FCAI. Tesla and Polestar left the FCAI last year because of differences about policies, including the federal governments new vehicle emissions standards.Tesla, however, has an outsize influence on the Australian market, having accounted for well over half of all EV sales in recent years, although the emergence of lower cost Chinese EVs ate away some of that market dominance in 2024.In Europe, where the EV market is resurgent Tesla EVs account for between 5 and 15 per cent of individual country markets. Its sales, however, are also plunging badly, amid community push back against his support of the far right AfD party in Germany, and his intervention on behalf of far right politicians and individuals in the UK and elsewhere.In the US, demonstrations were held at more than 50 Tesla dealerships over the weekend, according to CNN, while in Canada more than 300,000 people have signed a petition calling on the government to rescind Musks citizenship, offended by his statements that include a declaration that Canada is not a real country.Tesla stock has also fallen sharply, reversing almost all of the gains it made in the post Trump election victory euphoria. That are now growing calls for the Tesla board to consider replacing Musk, although there is no sign they intend to do that and are more interested in selling their shares.According to Electrek, chairperson Robyn Denholm, an Australia, has sold more Tesla stock, taking her total sales over the last three months (since the Trump election) to more than $US100 million.Kimball Musk, Elons brother, and Teslas Chief Financial Officer Taneja Vaibhav also recently sold ahead of a recent drop in the companys stock price. See: Tesla chairwoman sells $33 million worth of Tesla stock as she lets Elon Musk destroy the brand.The FCAI data is due to be released on Wednesday.See also:Tesla sales continue to plummet across Europe despite overall EV market growthAnd:Australian electric vehicle sales by month and by model in 2025Giles ParkinsonGiles Parkinson is founder and editor of The Driven, and also edits and founded the Renew Economy and One Step Off The Gridweb sites. He has been a journalist for nearly 40 years, is a former business and deputy editor of the Australian Financial Review, and owns a Tesla Model 3.
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