Australians Are No Longer Buying Teslas. Is the Hype Over or a Protest Against Musk?

Just a year ago, Tesla dominated Australia’s EV market, holding over 50% market share. But in February 2025, that figure shrank to just 28%, as Tesla’s sales plummeted 71.9% year-over-year.

The company sold only 1,592 vehicles last month, a drastic fall from 5,665 units in February 2024—one of its steepest slowdowns in the country. And the decline isn’t just a one-off. Over the last eight weeks, Tesla’s sales in Australia have dropped 66% compared to the same period last year, pointing to a deeper issue for the EV giant.

Meanwhile, Tesla’s struggles aren’t limited to Australia. In Europe, the company is experiencing a similar downturn, with February sales plummeting 50% in Norway, 42% in Sweden, and 48% in Denmark—countries once considered strongholds for Tesla’s EV dominance.

With Tesla’s stock down more than 30% in the past month, investors aren’t optimistic about an immediate turnaround. And the bad news keeps piling up.

Why Are Tesla’s Sales Falling?

1. The “Perfect Storm” of Factors Hitting Tesla

Tesla’s downturn isn’t just about competition—it’s the result of multiple pressures converging at once:

• Cost of living crisis: Rising interest rates and inflation have made expensive EVs a tougher sell.
• Market saturation: Early adopters already have their Teslas, and the next wave of buyers has more choices.
• Exploding competition: BYD, Hyundai, Kia, and MG are flooding the market with cheaper, feature-rich EVs.
• Tesla fatigue: Consumers are growing tired of the brand drama, pricing games, and Musk’s erratic leadership.

2. Musk’s Political Circus & CEO Distractions

Elon Musk’s increasingly controversial public persona may be turning off potential buyers. His political rants, social media feuds, and unpredictable decision-making have alienated parts of Tesla’s once-loyal fan base.

Some buyers simply don’t want their $60,000+ vehicle purchase to feel like a political statement.

3. The Hybrid Boom—Are Full EVs Losing Favor?

While Tesla’s BEV (Battery Electric Vehicle) sales decline, hybrid and plug-in hybrid (PHEV) sales are surging. Many Australian buyers appear to be hedging their bets, opting for hybrids instead of going fully electric.

Why? Range anxiety, charging infrastructure concerns, and sticker shock. While Tesla’s premium pricing once seemed justified, consumers now have more affordable hybrid alternatives that don’t require a complete shift in driving habits.

4. Insider Stock Selling & Fears of Tesla’s Decline

Adding to the unease, Tesla executives and insiders have been dumping stocks, a move that rarely inspires confidence. Is this just profit-taking—or a sign that even those within Tesla see turbulence ahead?

Could Tesla Go Bankrupt? Unlikely, But…

While Tesla remains the EV leader in Australia, its dominance is fading fast. Some skeptics even warn that Tesla’s long-term viability could be at risk if the company doesn’t adapt.

Critics argue that Tesla’s business model relies too heavily on software and connectivity, meaning the company could eventually introduce subscription fees just to keep your car running.

While a complete Tesla bankruptcy is unlikely, there’s growing speculation about a future buyout.
Will Apple or Google step in? Or will a legacy automaker swoop in to rescue Tesla before it collapses?

Can Tesla Recover?

Despite the slump, Tesla still leads Australia’s EV market. However, with BYD undercutting prices, hybrids winning over hesitant buyers, and Musk’s distractions piling up, Tesla faces its toughest fight yet.

If Tesla wants to regain its momentum, it may need to drastically rethink pricing, improve after-sales service, and distance itself from Musk’s unpredictable leadership.

But if current trends continue, Tesla’s golden era could be coming to an end.