Tesla's Model Y registers its top sales month in over a year, showing a positive turnaround for the company in May.
Tesla Model Y Rebounds in Australia with Strong Sales in Mid-2025
The Model Y, Tesla's popular electric vehicle (EV), has made a significant comeback in Australia, recording impressive sales figures in the middle of 2025. The first vessel carrying over 3,500 new Model Y vehicles arrived in the country, with deliveries commencing this week.
The Model Y sales have shown a rebound with strong monthly figures in mid-2025, particularly after the launch of a heavily updated Model Y in May 2025. The Model Y recorded 3,580 registrations in May and 3,457 in June, accumulating over 7,000 units in just two months, making it the best-selling EV in Australia during that period.
Year-to-date 2025, Model Y sales are down by 17% compared to the same period last year. However, this represents an improvement in Tesla Australia's overall decline, reducing the year-to-date drop from 62% in April to 39% by the end of June. June 2025 sales (3,457 units) were slightly below May’s 3,580 units and well below the March 2024 peak of 4,379 units for the Model Y, indicating some volatility but solid momentum after a poor start to the year.
Overall Tesla sales in Australia for the first half of 2025 stand at 14,146 vehicles, down approximately 39% compared to the same period in 2024, due largely to falling Model 3 sales, while Model Y sales have become more resilient. In June 2025, Tesla had its strongest monthly sales in Australia in a year, with 4,589 vehicles delivered (including Model Y and Model 3), a 17.8% increase from May 2025, though still 2% below June 2024’s figure.
The improved Model Y sales have helped Tesla partially recover in the Australian market despite ongoing global challenges and a second consecutive quarterly decline in Tesla’s worldwide deliveries. Tesla is planning to launch a cheaper 2025 Model Y variant to boost sales further and compete with growing rivals such as XPeng and BYD in Australia.
Other EV makers, such as Polestar, have also seen growth in sales. Polestar recorded 243 sales in May 2025, a rise of 66% from the same month a year ago. The Polestar 3 added 28 sales in May, taking its year-to-date total to 71, while the Polestar 2 added another 82 sales, taking its total for the year to 261, down 43% from the same period a year earlier.
The boost in sales was led by the refreshed Model Y, with 3,580 sales in May, more than double the same month in the previous year. Sales of the Model 3 totalled 317 in May, down from 1,958 in the same month a year ago. The Model 3 has slumped 70% to 2,583, but the Model Y is now down just 27.4% for the first five months of the year to 6,974.
The Australian new car market's share of electric vehicles (EVs) peaked above 10% last year but fell to just above 5% earlier this year. Sales data for the rest of the auto industry in Australia will be released by the FCAI on Wednesday, and that will include EV sales data from other car makers. The Model Y will retain its position as the best-selling EV on the Australian market, and by some margin.
Giles Parkinson, the founder and editor of The Driven, Renew Economy, and One Step Off The Grid web sites, and an owner of a Tesla Model 3, has been reporting on the recent surge in Model Y sales. Other articles discussing the Model Y include "New Tesla Model Y review: World’s best selling EV is now even better, and it costs less", "How Tesla surrendered its dominance of Australia's EV market", and "Australian electric vehicle sales by month and by model in 2025".
- As the Model Y sales in Australia gained momentum, it became apparent that many individuals were attracted to this electric vehicle's updated lifestyle features, leading them to opt for technology-enhanced driving experiences and sustainable car choices.
- With Tesla planning to launch a more affordable 2025 Model Y variant, the automobile market is abuzz with anticipation, as consumers contemplate the thought of embracing electric-vehicle technology while still enjoying the comforts and conveniences of modern gadgets and high-end accessories in their vehicles.
