Tesla Finds Rare Bright Spot in Australia as Global Sales Stutter

While Elon Musk's EV empire faces headwinds worldwide, Australia just threw Tesla a lifeline—May sales surged against the tide. No bailouts needed (yet).

Down Under bucks the trend: As Tesla grapples with softening demand and factory woes elsewhere, Aussie buyers are charging up registrations. Maybe it's the tax breaks—or just that classic Australian contrarian streak.

Meanwhile, legacy automakers are still trying to spin their 'transition years' into something shareholders will swallow. Nothing like a few delivery numbers to cut through the earnings-call fog.

Model Y surge lifts May, but global pressure continues

Liz Lee, associate director at Counterpoint Research, told CNBC the company’s May results in Australia were mostly about one thing, “strong demand for the updated Model Y.” But she added that the boost “does not yet signal a broader global recovery,” and pointed to Tesla’s overall sales being down 13% in Q1 worldwide. 

Australia’s rebound looks good on a spreadsheet, but globally, the company’s still under pressure. That pressure starts at the top. CEO Elon Musk has been a public relations disaster lately, and it’s hitting Tesla hard.

Before May, Tesla was struggling to sell cars in Australia amid reports of vandalism and protests tied to Elon’s support for Donald TRUMP and for his backing of far-right parties in Europe.

That political heat has stuck to the brand, especially in markets like Spain, Portugal, Denmark, and Sweden, where sales dropped sharply in May, based on figures shared this week by European industry groups.

The only exceptions were Norway, where Model Y sales climbed 213% year-over-year, and Turkey, where Tesla sold a record 1,545 units last month. Those jumps followed a major change in Tesla’s executive narrative.

At a press conference last week, Trump announced that Elon WOULD be stepping away from his formal government role. He’s still an advisor, but Dan Ives of Wedbush said in a note that Elon’s political chapter “is essentially over” and that turning his attention back to Tesla is “the best possible news Tesla investors could have heard.”

Dan said the pivot came at the right time, as Tesla’s gearing up for its long-delayed robotaxi launch later this month. Elon recently confirmed that driverless Model Ys are already being tested, and the launch will mark a major test for the brand’s future.

Tesla’s EV lead in Australia faces pressure from China’s BYD

Tesla’s fight is competitive. The company is under real pressure from Chinese EV makers, especially BYD. In April, BYD beat Tesla in European battery EV sales for the first time, based on numbers from JATO Dynamics, which called it a “watershed moment.”

BYD has also overtaken Tesla in global annual revenue, after rolling out aggressive discount campaigns across key markets. But in May, Tesla clawed back some ground. It outpaced BYD in Australia, with 3,897 Tesla sales compared to 3,225 for BYD.

Still, the gap is narrow, and the competition is heating up. Tesla only sells fully electric vehicles, while BYD’s product mix includes hybrids, which still sell strong in markets like Australia where charging stations are lacking in many areas.

Recent figures sent to CNBC by the FCAI show hybrid sales in Australia were up 6% year-over-year, while plug-in hybrids jumped 118% in May. FCAI chief executive Tony Weber said Australians are turning to hybrids because they want lower emissions without worrying about limited range, which remains a big issue for full EVs across the country.

That puts pressure on Tesla to adapt, especially with its year-to-date global performance still trailing. Liz from Counterpoint said the company should expand into markets like India, Southeast Asia, and Latin America, where governments are building EV infrastructure and offering purchase incentives.

On the financial side, Tesla’s stock ROSE 0.5% on Tuesday, but the company is still down 15% year-to-date. Even with Australia throwing it a lifeline, the company has a long way to go to recover globally.

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