Tesla Global Shipments Fall Sharply Except in Japan
Tesla’s global shipments dropped significantly last year in several key markets, including the United States and China, which together account for the largest portion of its sales. However, the manufacturer nearly doubled its sales in Japan—setting an example that could be useful for electric vehicle brands struggling to sell. Japan remains a very small EV market compared to the US, China, or even Europe. Out of approximately 3.8 million vehicles sold in Japan last year, only about 60,677 were battery-powered, according to several local media reports. Despite this, Tesla delivered a record 10,600 units in the country, almost twice the sales in 2024.
Tesla increased sales in Japan by intelligently sticking to the basics of retail sales strategy. The company moved away from relying solely on online orders and emphasized more on direct experiences that closely resemble traditional dealer models, Nikkei reported on Friday. Despite not operating franchise dealerships and selling directly to consumers, Tesla still relied on company-owned physical showrooms that mimic the dealer experience—without mark-ups and without price negotiations.
The situation began to improve in September 2024, Nikkei wrote, as Tesla recruited Richi Hashimoto—a former Red Bull marketing chief—as the country manager for Japan. Under Hashimoto, Tesla opened 16 permanent showrooms in Japan last year, all located in malls with high traffic, complete with test drive services in the parking area. However, that alone was not enough. Tesla also invested heavily in staff training and education. Jack is lagging behind in the EV race, which means most consumers may not yet be familiar with electric vehicle-related terms. There is still a need for time and effort, much like learning a new language.
“This was not just a problem in Japan. In the US, conventional car dealerships are often half-hearted about EVs because they disrupt the economic model that has been profitable for them. Electric cars require significantly less maintenance—no oil changes and fewer moving parts—resulting in the loss of crucial revenue sources from after-sales services. EVs also demand more intense staff training from the start and have higher price tags compared to similar gasoline-powered cars, making them harder to sell from inventory. However, for consumers, EVs are objectively superior: smoother, cost-saving thousands of dollars over time, and offering far more advanced software and technology.
With more than two dozen EVs scheduled to launch in the US in 2026, both manufacturers and dealer networks will benefit more by investing in salesforce training and smartly increasing the exposure of their models. Failure to adapt could leave them behind. The market will continue to grow regardless of what happens.”
It should also be noted that Tesla’s global sales decline is not solely related to retail execution. The company is facing an aging product line, a shift in focus to AI and robotics, and— in several markets—negative consumer reactions linked to CEO Elon Musk’s politics. The competition is much tougher than before in more prominent and mature EV markets. In contrast, Japan is still a nascent EV market, with limited model choices and the novelty factor of Tesla may not have faded yet. Other countries where Tesla sales grew in 2025 include Norway, where nearly one in five EVs sold last year was a Tesla, with a total of 34,285 units for the year. The company also reported selling 31,549 Model Y units in Turkey, adding a significant volume to its global sales total.
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