Tesla Struggles with Model 3 Sales in Australia, Introduces Incentives to Boost Demand
Tesla introduces a $3,000 incentive for exchanging Tesla Model 3 shares
In the first four months of 2025, Tesla's Model 3 sales in Australia have been sluggish, with a total of 2,266 units sold as of the end of April. However, the company is looking to turn things around with the introduction of sales incentives and stock clearance deals.
Tesla is currently offering up to $3,000 trade-in bonuses for Model 3 purchases, as well as price discounts of up to about $4,950 on the Model 3 variants. These discounts apply to entry-level Rear-Wheel Drive (RWD) and Long-Range All-Wheel Drive (AWD) models, bringing prices roughly down to $54,725 drive-away for the RWD model and $65,645 drive-away for the Long Range AWD in New South Wales.
Additionally, existing Tesla owners can transfer Enhanced Autopilot (EAP) or Full Self-Driving (FSD) packages to a new Model 3 at no extra cost, a benefit valid through September 30, 2025.
These incentives aim to clear existing inventory and boost sales, particularly in May, which is anticipated to be a significant month for Model 3 sales. The trade-in offer is limited to one trade-in per order and can only be applied to the purchase price of the Model 3 and cannot be redeemed as cash.
The trade-in offer is valid until June 30, 2025. Discounts on Model 3 vehicles range from $3,640 on Performance models to $5,550 on Long Range stocked cars. The last stock of previous generation Model Ys, built in late 2024 and early 2025, are also available with discounts of up to $11,000.
The slow start to Model 3 sales in 2025 contrasts with the performance in 2024, where Tesla sold 6,865 Model 3s over the same period. The company averaged over 1,230 units per month over the remaining three quarters for the rest of 2024.
Riz Akhtar, the founder of carloop, an Australian EV data and insight company based in Melbourne, is one of the many Model 3 owners. A mechanical engineer, Riz spent 7 years building transport infrastructure before starting carloop. He has a passion for cars, particularly EVs, and aims to help reduce transport emissions in Australia.
Despite the current sales decline, Tesla's Model 3 sales in 2025 have shown a slight improvement compared to the first quarter, averaging just over 565 sales per month in the first four months of the year. The company is hopeful that the new incentives and stock clearance deals will help stimulate demand and improve sales performance in the coming months.
Tesla's attempts to stimulate demand for the Model 3, such as offering sales incentives and stock clearance deals, could potentially lead to an increase in electric-vehicle ownership in Australia, aligning with Riz Akhtar's goal of reducing transport emissions. Furthermore, the introduction of these incentives may also influence the choice of lifestyle, as more individuals opt for technology-driven cars like the Model 3, over traditional vehicles, for car-maintenance and environmental reasons.
