Sales of new Tesla vehicles in the UK fell sharply in May, tumbling by more than 36% year-on-year, as the electric carmaker lost significant ground to rising competitors, most notably Chinese automotive giant BYD.
The slump coincides with growing political scrutiny surrounding Tesla’s controversial CEO, Elon Musk.
According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), Tesla registered just 2,016 cars in the UK last month — a stark decline from the 3,152 units sold in May 2024.
In contrast, BYD’s UK sales soared by an astonishing 407%, climbing from 596 vehicles to 3,025, thanks to its expanding line-up of hybrid and fully electric models. The Chinese manufacturer first surpassed Tesla in UK sales back in January.
Cumulatively, Tesla has sold 15,002 cars in Britain so far this year, marking a 7.8% drop compared to the same period in 2024, when sales stood at 16,272. The EV pioneer is facing mounting pressure in several key global markets, where it is struggling to maintain momentum amidst showroom protests and intensifying competition.
UK Electric Vehicle Market Sees Steady Growth
Despite Tesla’s decline, the wider UK car market showed signs of modest recovery.
Overall new car registrations in May rose by 1.6% to 150,070 — the strongest May performance since 2021, although still 18.3% below pre-pandemic levels in 2019.
It marked just the second month of growth in 2025, reflecting fragile consumer confidence amid economic uncertainty, the SMMT noted.
The growth was largely fuelled by fleet and business demand, which accounted for nearly two-thirds of all registrations. However, private buyer interest continued to wane, dipping by 2.3% year-on-year.
Sales of petrol and diesel vehicles also declined significantly, falling by 12.5% and 15.5% respectively. In contrast, low-emission and zero-emission vehicles saw a sharp rise.
Hybrid electric vehicles (HEVs) increased by 6.8% to 20,351 units, while plug-in hybrid (PHEV) registrations jumped by nearly 51% to 17,898. Battery electric vehicles (BEVs) surged by over 25%, capturing 21.8% of the market.
Altogether, electrified vehicles accounted for 47.3% of all new car sales in May, buoyed by competitive manufacturer incentives and growing environmental awareness among consumers.
UK EV Policy Fuelling Competition
Colin Walker, head of transport at the Energy and Climate Intelligence Unit, highlighted the positive impact of the UK’s Zero Emission Vehicle (ZEV) mandate — a government initiative designed to accelerate the adoption of electric vehicles.
“The ZEV mandate is doing exactly what it’s supposed to: fuelling competition, cutting prices and boosting sales,” he said.
According to analysis by New AutoMotive, Tesla is now at risk of losing its leading EV market position in the UK to Volkswagen, which has increased its electric vehicle sales by an impressive 201% this year.
Other mainstream manufacturers including Ford, Renault, and Peugeot are also seeing strong growth as they pivot towards full electrification. BYD, the only Chinese brand in the UK’s EV top 10, has reported a 261% surge in year-to-date sales.
James Hosking, managing director of AA Cars, noted that second-hand electric vehicle sales are also gaining momentum.
“With falling prices and improved running-cost savings, more consumers are making the switch to EVs. However, concerns over charging infrastructure and range anxiety are still holding some buyers back.”
