Tesla, the electric automaker owned by Elon Musk and once the darling of the stock and automotive markets, is facing declining sales both locally and globally following Musk’s role in the Trump administration.
A recent earnings release for the first quarter of the year shows Elon Musk’s company’s profit has plummeted by 71 per cent compared to the previous period in 2024. In Australia, Tesla sales of new cars dropped by 60 per cent year-on-year, while rival Polestar has lifted by 12 per cent.
B&T can reveal the number of current used Tesla listings on Carsales, and how it compares to this time last year. In 2025, used Tesla listings are up 5.5 per cent from 876 to 924. These numbers could show that drivers are trying to offload their Teslas or they are struggling to get rid of the electric vehicle.
The average price for a second hand late model Tesla Model 3 on Carsales has also taken a significant hit. The average price of used late model Tesla Model 3 (2023 and upwards) at the time of writing was around $53,000. A showroom late model Tesla Model 3 was a little more than $76,000 (used is -29.7 per cent lower than showroom in average price).
Tesla’s falling standing on the Australian second hand market could be a result of its South African owner’s political role heading up the Department of Government Efficiency (DOGE) in the US. DOGE’s expressed mission is to weed out profligate government agencies and departments to deliver more value for American taxpayers. However, the new department is not without controversy and Tesla stakeholders have been crying for Musk to step down from his role to return to the helm of Tesla.
Musk’s role within the Trump administration has led to sometimes violent blowback from American drivers. For instance, a man was arrested in Mesa, Arizona overnight for allegedly vandalising a Tesla dealership and setting fire to one of its cars. In the UK, an advert placed on a bus stop by British campaign group People vs Profiteers branding Tesla the “Swasticar” and reading “Goes from 0 to 1939 in 3 seconds” went viral.
“As some people know there’s been some blowback from the time I’ve been spending in Government with the Department of Government Efficiency”, Musk said on the concerns from stakeholders. “Starting next month, I will be allocating more of my time to Tesla.”
Tesla’s CFO Vaibhav Taneja has admitted that the blowback from Musk’s second life in politics has had an impact on its sales.
“The negative impact of vandalism and unwarranted hostility towards our brand and our people, had an impact in certain markets. Despite this, we were able to sell out legacy Model Y. We produced the legacy Model Y until the end of February,” he said.
Tesla’s first quarterly financial results reveal that revenue decreased by nine per cent year-on-year to US$19.3 billion ($30 billion), which includes a drop in car sales revenue of 20 per cent. Tesla shares have dropped in value by roughly half from n all-time high in December.
The outcries may continue as Musk isn’t fully stepping down from the role, rather only working once or twice a week, in an attempt to “make sure that the waste and fraud that we stopped does not come roaring back”.
