Tesla Inc. (NASDAQ: TSLA) is experiencing one of its most challenging periods, with declining sales across key global markets exerting significant pressure on its stock price. Sharp drops in sales across Germany, China, France, and Scandinavia have fueled a prolonged downtrend, leaving investors searching for signs of recovery. However, new data from Australia paints an even bleaker picture, raising concerns about the company’s ability to sustain its once-dominant position in the EV market.
Australian Tesla Sales Plunge by 70% in February
Recent reports reveal that Tesla’s Australian sales nosedived by 70% in February 2025 compared to the previous year. This marks a dramatic acceleration in the company’s downward trend, following a 33% decline in January. February’s collapse represents Tesla’s worst performance in Australia since 2022, with the Model 3 taking the hardest hit, experiencing an 81.4% drop in new registrations compared to February 2024.
While the broader Australian EV market has slowed, Tesla’s steep losses stand out. In contrast, Chinese automaker BYD has made significant gains with its Shark 6 hybrid truck, which became the third-best-selling utility vehicle in just its second month on the market. This shift suggests that Australian consumers are still open to electrified vehicles, but many are turning away from Tesla in favor of new competitors.
Tesla Scrambles to Attract Buyers with Deep Discounts
In an attempt to reverse its sales slump, Tesla North America has launched aggressive promotional campaigns to lure back customers. The company recently announced a “0% APR financing on all Model 3 trims” and a “$0 due at signing” lease offer, signaling urgent efforts to stimulate demand.
These steep discounts reflect Tesla’s growing struggle to compete in an increasingly crowded EV market. With legacy automakers and new Chinese competitors expanding their EV lineups, Tesla is facing mounting pressure to retain market share and defend its position as an industry leader.
Brand Perception Takes a Hit as Consumer Backlash Grows
Tesla was once hailed as a pioneer in electric vehicle innovation, attracting dedicated supporters and early adopters. However, the company is now experiencing a brand identity crisis, with some former advocates distancing themselves from Tesla due to dissatisfaction with CEO Elon Musk’s leadership.
Several longtime Tesla owners have expressed frustration with the company’s direction, with some even covering up Tesla logos on their vehicles or adding bumper stickers that read, “I bought this before Musk went crazy.”
Beyond individual actions, organized protests targeting Tesla have gained traction, aiming to deter potential customers and disrupt business operations. In more extreme cases, some activists have resorted to vandalizing Tesla properties, escalating tensions surrounding the company’s current trajectory.
Tesla’s Largest Shareholders Express Concern
Tesla’s worsening financial and reputational struggles have not gone unnoticed by major investors. Some of the company’s largest shareholders have openly criticized Elon Musk, accusing him of prioritizing political endeavors over Tesla’s core business operations.
With Tesla’s stock price declining and consumer sentiment at an all-time low, investors are growing increasingly anxious about the company’s long-term future. Questions are mounting about whether Tesla can navigate its current challenges and regain momentum in an industry that is evolving faster than ever.
As Tesla grapples with these mounting difficulties, the company’s next strategic moves will be critical in determining its future in the global EV landscape.
