Tesla has been knocked from the top of Australia's electric vehicle sales chart for the first time this year. The BYD Sealion 7, on sale locally since February, outsold the Model Y in July by a wide margin.
What's happening?
Figures from the Federal Chamber of Automotive Industries and the Electric Vehicle Council, shared by Drive, show 1,427 Sealion 7s were delivered during the month. Tesla's Model Y recorded 555 sales, with the addition of Model 3 sedans bringing Tesla's total to 917.
BYD's win wasn't limited to the Sealion 7. The brand's plug-in hybrid Shark 6 moved 1,233 units in July, and the Sealion 6 SUV added another 1,123.
Over the year so far, Tesla's Model Y still leads comfortably — 10,986 sales compared with 5,183 for the Sealion 7 — but the July result is a sharp turn from recent trends.
Why is this change important?
Tesla's Australian sales for 2025 are running 20.8% lower than at this time last year. That drop affects more than just the company's scoreboard position, as reduced supply can leave buyers facing longer waits or fewer choices, making it harder for some to switch to an electric vehicle.
This is not the first time Tesla's deliveries have slowed. The company saw sales dip in other markets earlier this year due to production gaps and shipping delays.
Price adjustments in recent years have also created uncertainty for would-be buyers. In this case, a pause in Model Y shipments from its Chinese factory, coupled with the timing of its updated Model Y launch in May, left fewer cars available in July.
While temporary supply problems can be resolved, any slowdown in EV adoption delays potential benefits that range from cutting fuel costs for drivers to reducing emissions from road transport.
What's next for Tesla?
Tesla's refreshed Model Y lineup briefly boosted sales in May and June, but maintaining momentum will depend on steady production and delivery. BYD, meanwhile, is broadening its range quickly, giving buyers more options in both fully electric and plug-in hybrid segments.
For Australians considering an EV, the increased competition could be good news. More brands in the market can mean sharper pricing and features tailored to different needs.
As more players crowd the EV market, July's shake-up is a reminder: Brand loyalty isn't the only factor on the road ahead. For drivers, the best choice might be less about the badge on the hood and more about who can deliver the right car, at the right price, at the right time.
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