Plummeting Tesla sales in Britain by 60% due to public disapproval of Elon Musk and sluggish growth in electric vehicle market
Tesla's UK Sales Plummet Amidst Intensifying Competition and Market Shifts
The sales of Tesla electric cars in the UK have taken a significant hit, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). Tesla's UK sales dropped by approximately 60% in July 2025 compared to July 2024, falling from 2,462 units to just 987 units[1][2].
This decline in demand is part of a broader trend across Europe where Tesla's overall sales have dwindled significantly—year-to-date sales in Europe are down 34.3%, despite the overall surge in electric vehicle (EV) sales on the continent[1]. Tesla's market share in the EU, UK, and EFTA has fallen from 3.4% to 2.8% year-over-year[2].
Several factors contribute to this decline. Tesla is losing ground to rising competition, notably from Chinese EV manufacturers like BYD, who are gaining market share rapidly in Europe[2]. European local automakers are also intensifying their EV offerings, increasing competition in what is now the most competitive EV market globally[2]. The decline is accelerating in key European markets such as Germany, France, and the UK, with Tesla struggling to maintain its previous sales volumes[1][2].
Mike Hawes, SMMT chief executive, addressed the new car market sensitivity to external factors, stating that July's dip in new car registrations shows this sensitivity[3]. He also mentioned the need for consumer certainty, suggesting confirming which battery electric vehicles will qualify for Britain's new EV grant could send a strong signal to buyers[3].
Separate data showed a drop in new Tesla registrations in several key European markets last month, contributing to the overall decline[1]. New car registrations in the UK decreased by 5% year-on-year to 140,154 units last month[4]. The SMMT previously forecasted battery electric vehicles to account for 23.5% of new registrations in 2025, but the latest projections suggest a slightly higher figure of 23.8%[4].
Despite the challenging market conditions, the demand for electric vehicles continues to grow, with growth in battery electric vehicle sales slowing to just 9.1% last month[1]. This indicates a maturing market where consumers have more options to choose from, leading to a more discerning approach in their purchasing decisions.
In conclusion, Tesla's decreasing demand in the UK and Europe stems chiefly from intensifying competition, shrinking market share, and a faster-growing electric vehicle market where alternative brands are capturing more consumers.
[1] Society of Motor Manufacturers and Traders (SMMT) (2025). SMMT's UK New Car Registration Market Report: July 2025. Retrieved from www.smmt.co.uk
[2] Society of Motor Manufacturers and Traders (SMMT) (2025). SMMT's European New Car Registration Market Report: July 2025. Retrieved from www.smmt.co.uk
[3] Society of Motor Manufacturers and Traders (SMMT) (2025). SMMT's Statement on July's New Car Market. Retrieved from www.smmt.co.uk
[4] Society of Motor Manufacturers and Traders (SMMT) (2025). SMMT's Forecast for Battery Electric Vehicle Registrations in 2025. Retrieved from www.smmt.co.uk
- The decline in Tesla's UK sales reflects a wider trend in the European insurance industry, as new battery electric vehicles qualify for government grants, but consumer uncertainty over which models will be eligible could negatively impact sales.
- The general-news media have reported that Tesla's dropping sales in the UK and Europe are due to a combination of factors including increasing competition from Chinese manufacturers and local automakers, as well as the rapid expansion of the finance sector offering loans for electric vehicles.
- In the UK politics, some have called for increased support for Tesla to maintain its competitive edge in the technology sector, suggesting policies that further incentivize the adoption of electric vehicles and protect domestic manufacturers from foreign competition.
