Tesla's UK car sales barely grew in September, New Automotive data shows - Reuters

Tesla's UK car sales barely grew in September, New Automotive data shows - Reuters

Tesla's UK car sales experienced minimal growth in September, according to new data from New Automotive. This comes as a stark contrast to the company's strong performance in the United States, driven by a surge in electric vehicle (EV) purchases ahead of the expiration of a $7,500 federal tax credit on September 30 .

While Tesla delivered 497,099 vehicles worldwide in the third quarter, a 7.4% increase from the previous year, its European sales declined significantly. Specifically, UK sales dropped by 22.5% year-over-year, reducing its market share to 1.5% . This decline can be attributed to increased competition from Chinese brands and plug-in hybrid manufacturers, as well as consumer backlash tied to CEO Elon Musk’s political activities earlier this year .

The company's Model 3 sedan and Model Y crossover saw strong deliveries, totaling 481,166 units, well above analyst expectations. However, the overall sales momentum was not enough to offset the significant drop in European sales . In China, Tesla's new long-wheelbase, six-seat Model Y L has been well-received, targeting family buyers in the region .

Looking ahead, analysts project a potential sales slowdown in the final quarter of 2025, with full-year deliveries expected to reach 1.61 million vehicles, about 10% below 2024 levels. Tesla must deliver approximately 389,498 vehicles in the December quarter to meet this target . Despite the challenges, Tesla is exploring new growth areas, including a supervised robotaxi service in Austin, and a new CEO compensation package for Musk, potentially worth up to $1 trillion .

Investors remain focused on Musk's long-term growth promises in autonomous driving, artificial intelligence, and robotics, even as short-term challenges loom. Tesla's market capitalization could hit $2 trillion early next year and $3 trillion by the end of 2026 .