Tesla's UK sales plummet despite growing demand for electric vehicles

Tesla's UK sales plummeted 60% YoY in July, while overall UK car sales fell 5%. Electric vehicle volumes increased, with BYD's sales soaring 514% YoY to 22,574. Tesla's market share dropped to 0.7%, from 1.67% last year. The industry welcomes the government's announced Electric Car Grant, which could boost demand for electric vehicles.

Title: Tesla's UK Sales Plummet 60% YoY in July, BYD Soars with 514% YoY Growth

Tesla Inc. (TSLA) faced a significant setback in its UK operations during July 2025, with sales plunging by 60% year-on-year (YoY) according to data from the Society of Motor Manufacturers and Traders (SMMT) [1]. This decline was accompanied by a broader fall in overall UK car sales, which dropped by 5% compared to July 2024 [2]. Despite these challenges, the UK electric vehicle (EV) market saw an increase in volumes, with BYD Co. Ltd. (BYDDY, BYDDF) experiencing a remarkable 514% YoY growth in sales [1].

Tesla's July sales in the UK stood at 987 units, a sharp contrast to the 2,462 units sold during the same month last year. This substantial drop resulted in a significant reduction in Tesla's market share, which fell to 0.7% from 1.67% in July 2024 [1]. The company's struggles in the UK are part of a broader trend of declining sales across several European markets, including Sweden, Denmark, and France [1].

Meanwhile, BYD has been thriving in the UK market. The company sold over 3,184 units in July 2025, representing a surge of 314% compared to the previous year. BYD's year-to-date (YTD) sales for 2025 stood at 22,574 units, up from 3,672 units during the same period in 2024 [1]. This growth has helped BYD capture 1.91% of the UK's market share, further cementing its position as a major player in the EV sector.

The broader UK car market also experienced a slowdown in July, with new car registrations falling by 5% year-on-year to 140,154 units [2]. The SMMT attributed this dip to external factors and the need for consumer certainty, particularly regarding the new Electric Car Grant scheme. The grant, announced on July 14, offers financial incentives for purchasing new electric vehicles, potentially boosting demand for EVs in the coming months [2].

The industry's response to the grant has been mixed. While some analysts see it as a much-needed boost for EV sales, others believe the current uncertainty about which models qualify for the grant may be delaying purchases. The SMMT has called for clarity on the grant to encourage more buyers to switch to electric vehicles [2].

Tesla's struggles are not confined to the UK. The company has been facing regulatory challenges and a backlash against CEO Elon Musk's political views, which have contributed to a decline in global sales. Despite these challenges, Tesla has recently announced a significant stock option grant for Musk, valued at nearly $30 billion, to keep him committed to the company [1].

In conclusion, Tesla's UK sales decline highlights the company's ongoing struggles, while BYD's remarkable growth underscores the competitive landscape in the EV market. The new Electric Car Grant scheme holds promise for boosting EV demand, but the industry awaits more clarity on the grant's details to drive this potential growth.

References
[1] https://www.benzinga.com/markets/tech/25/08/46851874/elon-musk-led-teslas-woes-deepen-as-uk-sales-plunge-60-in-july-rival-byd-surges-over-300
[2] https://www.gazetteherald.co.uk/news/national/25365487.registrations-new-cars-5-july-drivers-delay-ev-purchases/
[3] https://www.theguardian.com/business/live/2025/aug/05/bp-cost-cuts-profits-dividend-car-sales-services-sector-business-live-news-updates
[4] https://m.economictimes.com/tech/technology/teslas-uk-sales-drop-60-year-on-year-in-july-smmt-data-shows/articleshow/123114409.cms