Tesla (TSLA) Sees 675% Australia Sales Rebound in May Amid Global Struggles
Tesla (TSLA, Financials) reported a major rebound in May sales in Australia, where deliveries jumped to 3,897 vehiclesup over 675% from April and the highest monthly total in nearly a year. The surge was driven almost entirely by demand for the company's recently updated Model Y SUV, according to the Australian Electric Vehicle Council.
Year-over-year, Tesla's Australian sales rose just 9.3%, but the rebound followed a steep slump in April, when the company sold only 500 units. Sales of the Model Y were up 122.5% from a year earlier, while Model 3 deliveries declined significantly. Despite the improvement, Tesla's year-to-date sales in Australia remain down 48.2% from the same period in 2024.
Globally, Tesla continues to face headwinds. First-quarter sales dropped 13% year over year, according to Counterpoint Research. In May, sales declined 11% in the U.S. and slipped in several European markets, including Spain, Portugal, Denmark and Sweden. However, the company saw localized rebounds in Norwaywhere sales rose 213%and in Turkey, which posted a monthly record of 1,545 units sold.
Counterpoint's Liz Lee told CNBC that the Australia spike is notable but insufficient to offset broader weakness. She said Tesla must turn to high-potential markets such as India, Southeast Asia, and Latin America, especially as EV infrastructure expands and local incentives grow.
Tesla is leasing a new warehouse in Mumbai as part of its anticipated India expansion, which could be critical as competition heats up globally. Chinese automaker BYD outsold Tesla in Europe for the first time this spring, and is ramping up hybrid and EV options globally. However, in Australia last month, Tesla regained the lead with 3,897 vehicles sold versus BYD's 3,225.
Hybrid vehicles are gaining traction in Australia, where concerns about range and charging access persist. According to Australia's Federal Chamber of Automotive Industries, hybrid sales rose 6% and plug-in hybrids surged 118% in May.
Tesla shares rose about 0.5% Tuesday but remain down roughly 15% year to date.
Explore Tesla's valuation chart.
This article first appeared on GuruFocus.
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