Tesla January Sales Decline Despite Generous Incentives
January 2026 marked a challenging start for Tesla in the Australian electric vehicle market. According to the Electric Vehicle Council (EVC), the company sold only 501 vehicles this month, reflecting a significant 32% decrease compared to the same period in 2025.
Tesla’s January Sales Breakdown
The sales figures for January consisted of:
- 288 units of the Model Y
- 213 units of the Model 3
This decline comes despite the introduction of several incentives aimed at boosting sales. Tesla offered a $3,000 trade-in deal for customers interested in purchasing the Model 3. Moreover, owners of the Full Self-Driving (FSD) feature could upgrade to newer models equipped with the necessary hardware.
Sales History and Competitive Landscape
To provide context, Tesla reported a similar low in sales during April of the previous year, selling just 500 units. This was partially due to customers waiting for the refreshed Model Y, which was not available until May. Typically, January sees the lowest sales volumes for the company.
January 2026 also signified the launch of an upgraded warranty for new buyers. The warranty has increased from four years or 80,000 kilometers to an impressive five years with unlimited kilometers. This move aligns with Tesla’s strategy to enhance customer confidence in their vehicles.
Safety Recognition
January was also notable for the Tesla Model 3 and Model Y, both of which received best-in-class awards from the Australasian New Car Assessment Program (ANCAP). The Model Y achieved the highest safety score ever recorded by ANCAP, showcasing Tesla’s commitment to safety.
Incentives for February
As the month of February approached, Tesla continued its promotional efforts. The company began offering a $2,000 trade-in incentive for the Model Y SUV, applicable for both new and demonstrator models of the Premium RWD and Premium Long Range variants. Additionally, various Model Y vehicles with FSD features were listed at reduced prices, ranging from $1,770 to $2,070 off depending on the model.
There were also discounts available on the Model 3, with some equipped with FSD seeing reductions of up to $3,300. Buyers could now enjoy updated features, such as reinstated indicator stalks, available directly from local inventory.
Future Outlook for Tesla in Australia
Tesla has maintained its position as the best-selling electric vehicle brand in Australia for years. However, increased competition in the EV market is beginning to impact sales figures. As 2026 continues, it remains to be seen if Tesla can uphold its status as Australia’s leading EV brand.
Riz, the founder of carloop in Melbourne, has highlighted the trends and insights surrounding Australian electric vehicles. As a mechanical engineer with a passion for EVs, he aims to contribute to reduced transport emissions in the country while driving a red Tesla Model 3.
