Tesla's UK Comeback: A 21% Surge in Registrations in February

In a surprising turn of events, Tesla (TSLA) has bounced back in the UK with a 21% increase in registrations in February, following a significant slump in January. This rebound has left investors and analysts wondering what factors contributed to this sudden resurgence and how it compares to Tesla's European counterparts.

The UK's overall auto volume in February 2023 was 74,441 units, marking a 26% year-over-year growth. In the same month, plugin electric vehicles (PEVs) had a 22.9% share in the UK auto market, down from 25.6% in February 2022. This indicates that while the overall auto market is growing, the share of PEVs is decreasing slightly.

Chinese manufacturers have captured 8.2% of the European electric car market in 2023, selling 86,000 battery electric vehicles (BEVs). In the UK, Chinese manufacturers have contributed to nearly one-third of their total European sales in 2023. This increasing competition from Chinese automakers may be one of the factors contributing to Tesla's declining sales in Europe.

In the UK, Tesla Model Y was the best-selling vehicle overall in March 2023, with 8,123 units sold. This demonstrates the popularity of Tesla's products in the UK market. However, the overall decline in Tesla's European sales suggests that the company may be facing more significant challenges in other European markets.



The recent political controversies surrounding Elon Musk have played a significant role in Tesla's sales fluctuations, particularly in Europe. Musk's support for far-right causes and figures, such as Tommy Robinson and the German AfD party, has led to a decline in public sentiment towards him and his companies. In a survey conducted by Reuters, only 11% of the Swedish public had a positive view of Tesla, with those who had a negative view increasing from 47% to 63%. This negative sentiment is likely contributing to the decrease in Tesla sales.

Musk's political activities have also led to boycotts and protests against Tesla. For instance, the Polish government called for a boycott of Tesla vehicles after Musk's appearance at an AfD campaign event. Additionally, Tesla's European operations have been the subject of protests and an arson attack near its Berlin Gigafactory. These actions may be discouraging potential buyers from purchasing Tesla vehicles.

Looking ahead, Musk's political activities and the resulting public backlash could continue to impact Tesla's sales performance. However, it's essential to consider other factors contributing to Tesla's sales fluctuations, such as competition from Chinese automakers and the lack of a more affordable Tesla model. Additionally, Tesla's upcoming Model Y refresh could help boost sales, but it remains to be seen how much of an impact Musk's political controversies will have on future performance.

In conclusion, Tesla's 21% growth in UK registrations in February, following a January slump, can be attributed to several factors, including increased overall EV sales, Tesla's popularity, competition, and tax incentives. While the UK performance is encouraging, Tesla's European counterparts have experienced a significant decline in sales, which may be due to increasing competition from Chinese automakers and negative public sentiment towards Musk's political activities. As Tesla continues to navigate these challenges, investors and analysts will be watching closely to see how the company responds and whether it can maintain its strong performance in the UK market.