Tesla's UK Auto Sales Plummet Amid Musk Backlash, Chinese Rival BYD Sees Surge in Demand

Tesla's UK auto sales plummeted 45% in May amid CEO Elon Musk's backlash, while Chinese rival BYD's sales doubled. Despite the decline, Tesla remained the best-selling battery EV brand in Britain this year. However, there is good news for Tesla from Australia and Norway, where its vehicles saw a significant jump in demand during May. Wall Street remains cautious about Tesla's long-term stock trajectory amid ongoing challenges.

Tesla's UK auto sales tumbled by more than 45% in May, according to preliminary data from research group New AutoMotive. The automaker sold 1,758 units in Britain last month, down from 3,244 a year earlier [1]. Despite the significant decline, Tesla remained the best-selling battery electric vehicle (BEV) brand in Britain so far this year. Overall, new car registrations in the UK increased by 4.3% to 144,098 units in May, with BEV sales rising by 28% year-on-year [1].

Chinese rival BYD more than doubled its new car sales in the UK to 1,388 units during the month, marking a significant increase in its market presence [1]. This growth comes amidst Tesla's struggles, which have been partly attributed to CEO Elon Musk's embrace of far-right politics in Europe [1].

However, Tesla found solace in other markets. In Norway, Tesla recorded a 213% surge in sales during May, primarily driven by the Model Y, which saw over 2,346 units sold [2]. This growth in Norway provides a much-needed boost to Tesla, which has been experiencing tumbling sales across major markets throughout Europe. In Australia, Tesla's electric vehicle sales rebounded to their highest level in nearly 12 months in May, with sales jumping to 3,897 units, primarily driven by the Model Y [3].

Despite these bright spots, Tesla faces ongoing challenges. The company's global sales have suffered in recent months due to increased competition and reputational damage related to CEO Elon Musk's political rhetoric and activities [3]. Musk's return to focus on Tesla, after his involvement in U.S. politics, may help stabilize the company, but it remains to be seen if this will translate into broader market recovery.

Tesla's stock has been volatile, trading up about 0.5% on Tuesday but down about 15% year-to-date [3]. Wall Street remains cautious about the company's long-term stock trajectory amidst ongoing challenges, including increasing competition from Chinese EV makers like BYD [3].

References:
[1] https://auto.economictimes.indiatimes.com/news/passenger-vehicle/teslas-uk-car-sales-drop-over-45-in-may-new-automotive-early-data-shows/121613367
[2] https://www.benzinga.com/markets/tech/25/06/45739130/elon-musks-tesla-defies-european-slump-with-norway-sales-growth-in-may-model-y-comes-to-the-rescue
[3] https://www.cnbc.com/2025/06/04/teslas-australia-may-sales-soar-a-bright-spot-amid-struggles.html