Musk loses $600 million in Aussie market

While Elon Musk continues to rake in billions, Tesla sales down under are in the slow lane.

Elon Musk is officially the world’s richest man.

But while he enjoys global financial success, Tesla’s fortunes in Australia have taken a hit.

The latest figures reveal a concerning 21 per cent decline, equivalent to approximately $600 million, in Tesla sales in Australia.

Tesla Model 3 and Toyota Camry Hybrid. Photo: Camber Collective

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It’s a significant difference to the previous year’s growth.

Tesla, was once a dominant force in the Australian electric vehicle (EV) market but now faces rising competition from other brands, such as Chinese automaker BYD, which are outperforming Tesla in other regions.

Specifically, BYD’s Seal and Atto 3 continue to attract Australian buyers due to their aggressive pricing and advanced technology.

BYD’s Atto 3 is a popular Tesla alternative. Supplied

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The automaker’s momentum is undeniable, with its most recent quarterly revenue of US $28.4 billion surpassing Tesla’s US $25.18 billion for the same period.

According to Stake market analyst Samy Sriram the shift in the market is also reflected in trading data for 2024 with both companies seeing strong stock performance.

2022 Tesla Model Y RWD. Photos by Thomas Wielecki.

“We’re seeing some of that sentiment reflected in trading data. In 2024, while sentiment towards both TSLA and BYD was positive, the latter saw more bullish bets. On Stake, 64 per cent of TSLA trades were buys, whereas 75 per cent of BYD trades for the year were buy orders.” she said.

Sriram explained BYD has performed well in 2024 with a strong 45 per cent increase in stock value this year.

However, Tesla’s performance was even more impressive.

Tesla rivals include the Nissan Leaf, Polestar 2, Hyundai Ioniq 5, Porsche Taycan, Volvo XC40 Recharge. Photo: Thomas Wielecki

“Tesla has seen an even stronger run, rallying around 30 per cent since Trump’s election win in November, and almost 70 per cent year to date, helping Elon Musk to regain his position as the world’s richest person.” she said.

This rally helped Musk return to the top spot on the world’s wealthiest ranking.

But with sales down in Australia, will this impact Musk? Likely no.

Australia is a small market, accounting for just 3 per cent of Tesla’s global sales, with the U.S. and China continuing to be its largest market.

However, Sriram explained the potential impact of Trump’s trade policies with China may force Tesla to refocus their efforts on places like Australia.

“As Tesla continues to compete with newer entrants to the market, it might be forced to lower prices and see a considerable drawdown in its operating margins.” she said.

Originally published as Musk loses $600 million in Aussie market