Tesla’s new car sales in the UK plummeted by nearly 60 per cent in July, according to new figures from the Society of Motor Manufacturers and Traders (SMMT), marking one of the sharpest declines in the brand’s recent history in Britain.
The electric vehicle (EV) manufacturer registered just 987 new cars last month, down from 2,462 in July 2024 — a year-on-year drop of 59.9 per cent.
The slump comes despite a recent refresh of its Model Y, the best-selling EV in Europe last year, and highlights the mounting challenges Tesla is facing across its global markets. Industry analysts point to a combination of factors behind the decline, including consumer backlash linked to Elon Musk’s public statements, regulatory scrutiny, and a highly competitive EV landscape with new entrants from China and legacy automakers stepping up their offerings.
The dip in Tesla’s sales also mirrors a wider cooling in the UK car market. Overall new car registrations fell by 5 per cent year-on-year to 140,154 units in July, according to SMMT data.
While battery electric vehicle (BEV) sales continue to rise, growth has slowed. BEV registrations increased by 9.1 per cent in July, a notable moderation compared to previous months. The SMMT now projects that 23.8 per cent of new car sales in 2025 will be battery electric — a marginal increase from its earlier forecast of 23.5 per cent.
Mike Hawes, chief executive of the SMMT, said the data reflected the new car market’s ongoing sensitivity to macroeconomic and political conditions.
“July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty,” Hawes said.
With the UK’s Zero Emission Vehicle (ZEV) mandate requiring manufacturers to meet escalating EV sales targets or face fines, carmakers are under pressure to maintain momentum even as consumers navigate rising interest rates, inflation, and shifting EV incentives.
Tesla’s performance will be closely watched in the coming months as the brand seeks to maintain its foothold in key European markets amid growing competition and mixed sentiment around its leadership.
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Tesla’s UK sales slump nearly 60% in July amid market pressures
