Tesla kicked off 2026 with a significant drop in sales, reporting just 501 units sold in January, a 32% decrease compared to the same period last year, according to the latest data from the Electric Vehicle Council (EVC).
Sales Breakdown and Seasonal Trends
The January 2026 figures comprised 288 Model Y sales and 213 Model 3 sales. This dip occurred in the first month of the quarter, typically Tesla’s slowest sales period.
Incentives Offered in January
Despite the lower sales volume, Tesla implemented several incentives during January to stimulate purchases. These included a $3,000 trade-in offer for Model 3 buyers. Additionally, a Full Self-Driving (FSD) Supervised transfer offer was available for customers upgrading to newer Tesla models equipped with the necessary hardware for the software.
Historical Context and Model Y Deliveries
The company experienced even lower sales in April of the previous year, with only 500 units sold, largely attributed to the ongoing anticipation for the refreshed Model Y. Deliveries of the updated Model Y commenced in May, subsequently stabilizing the brand’s sales volumes for the remainder of the year.
New Warranty and Safety Accolades
January also marked the introduction of Tesla’s upgraded 5-year unlimited kilometer warranty for all vehicle purchases made from the start of 2026, an increase from the previous 4-year or 80,000 km coverage. Furthermore, both the Tesla Model 3 and Model Y received top ANCAP safety awards in the same month, with the Model Y achieving the highest safety score ever recorded by ANCAP.
February Incentives and Inventory Deals
As February began, Tesla introduced a $2,000 trade-in offer for the Model Y SUV, applicable to new or demonstrator Premium RWD or Premium Long Range variants purchased throughout the month and March. Concurrently, a significant number of Model Y vehicles equipped with Tesla’s FSD Supervised were available in inventory, featuring price reductions of $1,770 for RWD models and $2,070 for AWD versions. The Model 3 also saw discounts on FSD Supervised and standard configurations, with some vehicles available for up to $3,300 less.
Model Naming and Market Strategy
In recent developments, Tesla renamed its models in Australia to align with global naming conventions, confirming no cheaper models would be introduced for the Australian market. This change added the “Premium” badge preceding the existing non-Performance designations for both Model 3 and Model Y vehicles.
Market Position and Future Outlook
Tesla has historically been Australia’s leading EV brand for over a decade, with the Model 3 and Model Y driving significant growth in recent years. However, with intensifying competition, Tesla’s sales trajectory appears to be moderating. As this is just the initial month of 2026, ongoing monitoring will be crucial to determine if Australia’s best-selling EV brand can maintain its leading position throughout the year.