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New Tesla Model Y Boosts Sales in Two Key Markets. Is It Enough?
The refreshed Model Y shows Tesla still has some fight left in it, but whether the trend will catch on remains to be seen.
Photo by: Andrei Nedelea
Iulian Dnistran 
By: Iulian Dnistran
Jun 4, 2025 at 10:04am ET
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- Tesla scored two major rebounds last month.
- The American automaker saw triple-digit sales increases for its Model Y crossover in two big markets.
Tesla scored two big wins last month—and wins it needs right now—thanks to the refreshed Model Y.
After several months of declining sales around the world, the American EV maker saw a major rebound in Norway and Australia, with triple-digit increases in sales compared to the same period last year.
In Norway, which has the highest electric vehicle uptake in the world, Tesla sales jumped 213% in May, according to the Norwegian Road Federation (OFV). Last month, Tesla sold 2,346 Model Ys here, up from last year’s 690.
2025 Tesla Model Y
Photo by: InsideEVs/Andrei Nedelea
In Australia, Tesla bounced back with its highest sales volume in nearly a year, thanks again to the refreshed Model Y, which only recently went on sale here. In May, Tesla delivered 3,897 vehicles in Australia, 3,580 of which were Model Ys. The electric crossover saw a 122.5% year-over-year increase in deliveries, but as a brand, Tesla only rose 9.3% because the Model 3, the only other Tesla sold in Australia, had just 317 deliveries last month, down 83.8%.
However, these are lonely bright spots in an otherwise bleak picture. While Tesla is still one of the biggest EV makers in the world, its grip has been slowly fading. In April, Tesla ranked 10th on the best-selling EV companies in Europe, below China’s BYD.
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Sales in Europe have fallen off a cliff since the beginning of the year, thanks in no small part to Elon Musk’s antics during his tenure in the Trump administration, as well as the salute-that’s-not-a-salute controversy and support of far-right political parties, which alienated a good chunk of Tesla’s European buyers. Customers have plenty of choices here, with dozens of EVs offered by so-called traditional automakers that have risen to the occasion and filled the gap.
Despite Tesla sales being in a death spiral, European EV sales have seen healthy increases, proving that there’s life beyond the Model 3 and Model Y. Now, though, it looks like the refreshed electric crossover is starting to regain lost market share.
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Last month, Tesla’s CEO said that the company has seen a “major rebound” in demand after its factories were closed in the first quarter to retool for the updated Model Y. That’s partly true, as these figures show, but there’s no denying that by and large, it’s not looking good for Tesla’s automotive business.
Last month, the American company’s sales plunged 53.7% in Sweden, 68% in Portugal, 30.5% in Denmark, 36% in the Netherlands, 67% in France, and 19% in Spain. While there is a dim light at the end of the tunnel, Tesla needs to bring something new to the table if it wants to regain lost ground. The rumored slimmed-down Model Y that could make an appearance later this year might be the ticket, but we won’t know until we see it.
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