Tesla’s UK sales plunged 60% in July 2025, marking a significant decline amid a broader slowdown in electric vehicle (EV) demand across Europe. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), just 987 Tesla vehicles were registered in the UK during the month, down from 2,462 in July 2024.
This sharp year-on-year fall comes after a brief rebound in June, where Tesla recorded a 14% increase. The recent drop reflects growing consumer uncertainty, intensified competition from Chinese automakers, and concerns over the company’s leadership.
BYD Accelerates in the UK Market
Tesla’s biggest challenge now appears to be BYD, the fast-growing Chinese EV manufacturer, which quadrupled its UK registrations year-on-year to 3,184 vehicles in July. This makes BYD one of the top contenders in a market once dominated by Tesla.
The decline in Tesla registrations extended beyond the UK. In July, sales dropped 86% in Sweden, 27% in France, and 58% in Belgium, despite the release of an upgraded Model Y SUV.
Leadership Disputes and Investor Concerns
Tesla’s ongoing struggles are not limited to sales. The company revealed this week that its board has approved a new pay package for CEO Elon Musk, granting him 96 million shares in a move aimed at “energising and focusing” the billionaire founder.
Musk is still battling a shareholder lawsuit in Delaware over his previous $56 billion compensation package, which was invalidated in January 2024 by Judge Kathaleen McCormick. Since then, Musk has threatened to exit Tesla unless granted greater control of the company — raising concerns about leadership stability.
UK EV Market Faces Broader Slowdown
Tesla’s decline also coincides with a 5% year-on-year drop in overall car registrations in the UK, which fell to 140,154 vehicles in July. This reflects general hesitancy among consumers due to uncertainty around eligibility for the government’s new EV subsidy scheme.
The UK government recently confirmed that four Citroën electric vehicle models would qualify for its new £650 million grant, offering buyers £1,500 in savings. Despite this, Citroën’s registrations dropped 41%, while Fiat fell 43%, Honda 46%, BMW 18%, and Toyota 23%.
