The electric car giant Tesla is losing ground fast in the UK. Sales dropped 60% in July 2025 compared to the same month last year. This marks Tesla’s worst performance since entering the British market.
The numbers tell a troubling story. In May 2025, Tesla sold just 1,758 cars in the UK. That’s down 45% from the 3,244 units sold in May 2024. The company’s market share has fallen to 1.85% from 2.37% two years ago. During the first six months of 2024, Tesla sold 23,029 cars in the UK, an 11.90% drop from 2023.
Tesla’s problems aren’t limited to Britain. Across Europe, the company’s sales fell 34.3% from January to July 2025. In Germany, Tesla might sell fewer than 20,000 cars this year. European EV sales are growing, but Tesla’s registrations dropped 41.6%.
Tesla’s European sales plummeted 34.3% while the overall EV market keeps growing.
Chinese car companies are taking Tesla’s customers. BYD sells electric cars for half of Tesla’s prices. In the first half of 2025, BYD sold 14,807 units in the UK and captured 9.4% of the market. MG, another Chinese brand, sold 28,992 EVs in 2023, making it Tesla’s closest competitor in Britain. The BYD Dolphin model, priced at £18,650, directly competes with Tesla’s Model 3, which costs £39,990, creating a massive price gap that attracts budget-conscious buyers.
Production problems have made things worse. Tesla couldn’t make enough Model Y cars to meet demand. Supply chain issues meant fewer cars reached UK dealerships. These manufacturing troubles stopped Tesla from fighting back against competitors. Empty showrooms across the UK meant customers couldn’t see or test drive cars, pushing them toward rival brands with readily available inventory.
Tesla’s trying to win back buyers with big discounts. The company now offers Model Y leases for $350 per month. They’ve also created a cheaper version called the “E41” that costs less than £40,000. These price cuts match what Hyundai and Volkswagen charge for their electric cars.
The Model Y was Britain’s most popular EV in 2024. It ranked fifth among all new cars sold. In June 2024, Tesla sold 3,642 Model Y units, making it the third best-selling car that month.
But those glory days seem over. Tesla’s UK sales continue falling while Chinese brands gain more customers every month.