Tesla has made a powerful comeback in Australia, recording its strongest sales month in nearly a year. Thanks to the launch of the refreshed Model Y, the electric vehicle giant saw a major surge in May 2025, delivering 3,897 units—up from just 500 in April. This sharp rise signals renewed consumer interest and highlights the growing appeal of Tesla’s latest updates, positioning the company for a potential turnaround after a slow start to the year.
Model Y Leads the Charge
The new Model Y was the highlight of Tesla’s May performance. It accounted for 3,580 of the 3,897 deliveries. This represents a 122.5% increase from the 1,609 Model Y units sold in May 2024. It also means the model’s greatest performance since June of last year.
Demand surged as soon as the new Model Y arrived in dealerships. Some distribution centers reported handling 70 to 100 autos every day. The revamped design features a redesigned front and back appearance, improved suspension, and a more polished interior. Buyers responded positively to these modifications.
Overall Sales Still Lag Behind 2024
Despite a great May, Tesla’s total performance in 2025 is still behind. By the end of May, the company had sold 9,557 vehicles in Australia. That’s a 48% decline from the same period last year.
The Model Y has held up better than previous models. Its year-to-date revenues are down just 27.4%. Meanwhile, the Model 3 car is struggling. Sales of the Model 3 have decreased by 71%, with only 2,583 units sold so far in 2025. In May, Tesla delivered only 317 Model 3s. Limited stock was one of the primary reasons for Tesla’s weak start in 2025. The business halted production at Giga Shanghai early last year. This provided time to prepare the facilities for the construction of the new Model Y.
The delay hampered delivery in several nations, including Australia. Fewer automobiles were available in the first quarter, resulting in lower sales results.
Political Ties May Have Hurt Demand
Tesla has also faced challenges in terms of public perception. Elon Musk’s political participation in the United States, notably his ties to former President Donald Trump, has garnered international notice. Some Australian consumers may have reacted badly. This element most likely increased pressure throughout the initial months of 2025.
FSD Could Boost Sales Further
There is hope on the future with Full Self-Driving (FSD) technology. Tesla recently shared a video of its FSD system traversing Melbourne streets, including a tricky hook-turn.
Unlike other countries, Australia has no regulatory barriers to FSD. This allows Tesla to introduce the feature more widely and maybe attract additional customers.
Tesla’s Country Manager for Australia, Thom Drew, highlighted the excitement around the updated Model Y.
“When we launched orders back in January, we had an enormous response to the launch edition. We’ve only just started test drives in the last couple of weeks. The boat’s been slowly making its way around the country. And now we’re seeing that kind of second wave come through, and seeing a lot of interest.”
“I think we had a record test drive week, last week, in our entire history. So yeah, [we’re] seeing some really strong interest.”
The Launch Edition featured special badging and upgrades, making it stand out from the standard Long Range version. That excitement helped drive traffic to Tesla’s showrooms and websites in May.
Tesla’s sales increase in May is a promising indication. However, the corporation does not want to stop there. It plans to reveal its long-awaited Robotaxi platform on June 12. This invention has the potential to transform the brand’s image and increase its presence in markets such as Australia.
For the time being, the redesigned Model Y has provided Tesla with a much-needed win. It’s unclear whether this momentum will remain until 2025.
