US automaker Tesla said Australian consumers bought all available local stock during March, and motorists in NSW and Queensland leading the charge, buying hundreds more electric vehicles.
The Electric Vehicle Council revealed the trend on Thursday, publishing sales figures from Polestar and Tesla that showed EV sales had risen by 39.2 per cent during the first three months of 2026.
The rise follows global oil shortages fuelled by conflict in the Middle East that have forced up the price of fuel to unprecedented levels, with diesel priced at more than $3 a litre around Australia.
The change inspired a boost for Tesla, which sold more than 3400 vehicles during the month – a rise of 23 per cent compared to March 2025.
"The fuel crisis is pushing Australians to look for more certainty, both on energy and the cost of living, and EVs are delivering exactly that," Tesla Australia country director Thom Drew said.
Polestar sales dropped 12 per cent in March but Australian managing director Scott Maynard said test drive bookings tripled in the past two weeks.
"There is a clear sense of urgency from customers, which is driving strong order volumes," he said.
The race to adopt electric transport was part of a fundamental shift for drivers, Electric Vehicle Council chief executive Julie Delvecchio said, triggered by rising petrol prices.
"What we're seeing is a tipping point," she said.
"The fuel crisis hasn't created interest in EVs, it's accelerated a shift that was already underway."
Buying an electric car could save households up to $3000 a year, Ms Delvecchio said, and she urged the federal government to retain the fringe benefits tax exemption to help more drivers save money and conserve fuel.
Electric vehicles made up 11.8 per cent of new car sales in February.
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