As the electric vehicle (EV) market is growing, the industry is experiencing both opportunities and challenges. One of the biggest changes comes from the fluctuations in the market, driven by shifting policies, economic factors and Tesla’s Sales Slump. Tesla has been a dominant force in electric car world, but now it has experienced a significant drop in sales, in key markets like Australia and Europe. These changes can benefit other companies to step in and offer competitive products at affordable price. In the ongoing year we can expect electric cars priced as below as $20,000, with a wider variety of vans and electric utes.
According to Electric Vehicle Council, over 2,40,000 electric vehicles have been sold in Australia since 2011. However, battery-powered cars made up only 4.4% of new car sales in Australia last month.
Dan Caesar being the CEO of Everything Electric, made these predictions before the launch of his company’s third electric vehicle show in Australia. His prediction comes after Australia recorded significantly lower sales for new electric cars in January, after a year of steady growth.
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Global Impact of Tesla’s Sales Slump:
The sales of electric vehicles are also subject to change in other parts of the world. As in United States, President Donald Trump removes sales target of 2030 EV. He threatened to impose tariffs on electric cars from Europe and Canada. While these changes can slow down the sales in US, but Caesar believes that car brands might focus on the markets like Australia. Resultantly, spike in supply and lowering prices.
Chinese car brands, which are locked out of the US due to 100% tariff introduced in2024, are already lowering prices to attract customers. Mr. Caesar said:
“For places like Australia and the UK, they move up in the export ranking for Chinese car makers, which will help drive prices down.”
“We’re seeing Chinese brands that have amazing tech but there is a trade-off in that they are new brand and to get people to trust them… they’ll have to drop their prices a little.”
The current cheapest EVs in Australia is still priced above $30,000. However, one new electric car model by Chinese is launching at the show and it is expected to be priced around $20,000. Indeed, A great difference!
It will lead to a great competition among electric car brands, especially with Tesla’s global sales slump. Tesla’s sales have already dropped to more than 30% in Australia, and even more in other countries like Spain, where sales are dropped to 75%.
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The Upcoming Sydney Electric Vehicle Show
The upcoming event of Sydney Showground car show will commence from 7 March and will end on 9 March. In this show, six new Electric Vehicle models will be launched. These models will include utes, vans, motorcycles and even the Marine vessels. With all these models, they will offer up to 7,500 test drivers!
Conclusion:
This sales slump is definitely challenging for Tesla, Caesar sees it as an opportunity for new and existing brands to grow. He said that his reading of data indicates, Tesla has some perception problem, and these issues might be connected to Elon Musk. But he is uncertain about the long-term impact of this issues, and how things develop over the couple of months. He further explained his point that Tesla has an incredibly loyal customer base, so if some of those buyers are in play again, for the new brands that is a whole bunch of consumers.