Tesla Sales declines in the U.S. and Europe may be declining, but it reported a highlight in Australia – its electric vehicle sales rebounded to their highest levels in the nearly 12 months in May.

The U.S. electric car maker said Tuesday its vehicle sales jumped to 3,897, largely due to record sales of its recently remodeled Y Model Y Compact Sport Utility vehicles.

Sales of the Model Y in Australia soared 122.5%, while sales of the Company's Model 3 fell significantly.

Australia's total delivery year rose only 9.3 per cent, but soared more than 675 per cent from April when only 500 electric vehicles were sold in April, according to the Australian Electric Vehicle Commission.

The EV Council is the exclusive source of sales data for Tesla and Polestar in Australia, and the brand withdraws from the Federal Automobile Industry Conference Hall (FCAI) last year.

Tesla's April sales figures in Australia have been the company's worst performance of the year. Despite a May rebound, total sales of EV manufacturers in Australia fell 48.2% compared to the same period last year.

"Tesla's strong sales growth in Australia is an encouraging sign that is almost entirely driven by strong demand for updated model Y. However, globally, Tesla still faces headwinds."

She added that Tesla's sales fell 13% year-on-year in the first quarter, according to Counterpoint EV sales tracker. “So, while the latest Australian rebound makes sense locally, it has not yet shown that the global recovery is wider.”

Tesla's global sales have suffered losses in recent months, given the competition and reputational damage associated with CEO Elon Musk's political rhetoric and activities.

For example, Tesla's Australian sales struggled with reports and protests related to U.S. President Donald Trump's administration and support for European far-right parties.

Tesla reported on Tuesday that its U.S. sales fell 11% from last year. On Monday, European industrial groups sold significantly lower new Tesla cars in Spain, Portugal, Denmark and Sweden last month.

But there are some highlights. Tesla sent a surprise rebound in Norway, with the Y model helping it increase its vehicles by 213% a year ago. Tesla also said it broke a record record sales in Turkey last month.

The data comes after Trump's press conference last week, where he announced that Elon Musk will officially leave his role in the federal government and in the White House.

Although Trump added that Musk will continue to serve as an adviser, in a research note following the announcement, Wadebush's Dan Ives said he believed Musk's political days were over after the brand losses suffered by Tesla.

Tesla Bull said Musk returns to electric carmakers “is the best news” with the launch of Robotaxi later this month, and news Tesla investors may hear. Musk said Tesla is already testing driverless YS.

Musk's return comes at a time when Tesla is also facing stricter competitions, especially from Chinese electric car manufacturers.

For example, in the face of fierce competition in China's domestic market, BYD has been expanding globally and is increasingly moving forward with Tesla.

According to Jato Dynamics, China's Bied surpassed European Tesla for the first time in April. The auto giant recently announced many discounts, and other Chinese automakers followed suit. In March, it was revealed that Tesla lags by Byd in total annual sales revenue.

According to a report by Jato Dynamics, Byd sold European pure battery electric vehicles for the first time in Europe last month, and that was the "watershed".

However, in May, Tesla was able to regain the lead in BYD for Australian vehicle sales, with BYD's 3,225 selling at 3,897.

It is worth noting that Tesla specializes in battery-electric cars, while Byd also sells hybrid cars. Battery electric vehicles operate completely on electricity, while hybrid vehicles combine batteries with internal combustion engines.

Sales of hybrid and plug-in hybrid vehicles, a type of hybrid that can be charged by plugging in an external power supply, rose by about 6% and 118%, respectively, according to data sent to CNBC by Australia's FCAI.

"Recent sales figures show that consumers are increasingly turning to hybrid and plug-in hybrids as many Australians want to reduce vehicle emissions," said Tony Weber, CEO of FCAI.

He added that there are no range restrictions associated with battery-electric vehicles in hybrids, which are particularly concerning in Australia.

Counterpoint's Lee said Tesla should continue to look for high-potential areas such as India, Southeast Asia and parts of Latin America amid growing global competition and the threat of hybrid vehicles.

“These markets are strengthening EV infrastructure and incentives and Tesla can benefit from moving ahead, especially if it produces locally and tailors locally preferred products,” she said.

Tesla announced on Tuesday that it would lease a warehouse in Mumbai, which is expected to be used for vehicle services as part of the company's long-standing expansion in India.

Tesla's trading grew about 0.5% on Tuesday, down about 15% so far.