Tesla’s sales in Germany plummeted by 76.3% last month, while Australia saw a similar drop of 71.9%
Less than a year ago, Tesla confidently projected it would sell 20 million electric vehicles annually by 2030. However, the company’s outlook has taken a sharp turn. After seemingly abandoning this ambitious target in mid-2024, Tesla is now facing its first annual sales decline in over a decade. The situation has worsened significantly in major markets like Germany, Australia, and China, where sales have seen a dramatic drop.
In Germany, data from the KBA (Germany’s Federal Motor Transport Authority) shows that Tesla’s sales fell by 59.5% in January 2025, with only 1,277 new car registrations. The decline accelerated in February, plunging by a staggering 76.3% compared to the same month in 2024, with just 1,429 units sold.
Overall, Tesla’s sales in Germany have dropped by 70.6% in the first two months of the year, even as the country’s overall BEV sales increased by 30.8% in February.
The situation in Australia isn’t much better. Data from the Electric Vehicle Council shows Tesla sold only 1,592 vehicles in February 2025 — a sharp 71.9% drop from the 5,665 units sold in February 2024. For the first two months of the year, Tesla delivered 2,331 vehicles in Australia, down 65.5% from the 6,772 units sold during the same period last year.
Despite the recent launch of the heavily updated Model Y, which is currently available only in the premium (A$73,400) Launch Edition variant, demand has not picked up. Sales of the previous Model Y model dropped by 55.4%, while the refreshed Model 3 sales plummeted by 81.4%.
In China, one of Tesla’s most critical markets, the struggle continues. Preliminary data from the Passenger Car Association shows that Tesla produced and sold 30,688 vehicles in February 2025 — a steep 49.16% drop from the 60,365 units sold in February 2024.
This figure includes both domestic sales and exports, highlighting Tesla’s diminishing market share amidst fierce competition from local EV manufacturers.
Tesla’s global dominance appears to be fading as the company faces slowing demand, market saturation, and intensified competition. Whether the decline is due to product fatigue, leadership controversies, or slower-than-expected adoption of its new models, Tesla’s once-unshakable stronghold in major markets is now under serious pressure.
