Tesla (TSLA.US) July UK Sales Plummet 60% as Market Share Shrinks to Less Than 1%

It has been learned that Tesla (TSLA.US) saw a massive plunge in new car sales in the UK, with a year-on-year drop of nearly 60%, selling only 987 vehicles. Meanwhile, the overall number of new car registrations in the UK fell by around 5% to 140,154 in July. Moreover, Tesla's market share in the UK shrank from 1.7% in June to less than 1% in July.

Despite the model Y's facelift, Tesla's new car registrations continued to decline in several major European markets in July. Official industry registration data shows that Tesla brand registrations (which are closely related to sales) continued to shrink across Europe, with a year-on-year drop of 86% to 163 vehicles in Sweden, 52% to 336 vehicles in Denmark, 27% to 1,307 vehicles in France, and 62% to 443 vehicles in the Netherlands. These countries have been witnessing Tesla's electric vehicle registrations plummeting for seven consecutive months.

Analysts suggest that this may be due to a backlash against Elon Musk's political stance, regulatory challenges, and intensified competition (including from Chinese electric car brands).

Musk has previously stated that the extremely strict automated driving regulations in Europe make it more difficult for Model Y to sell and promote its FSD full autonomous driving service subscription. In the European market, Tesla's Model Y offers a "big selling point" with its supervision-style autonomous driving system. Musk said, "We believe that once we can give European customers an experience similar to what we offer in the US market, our sales will significantly improve."

Meanwhile, Chinese electric car manufacturers are making significant progress in the European automotive market. According to reports, by mid-2025, Chinese electric vehicle brands accounted for 5.1% of new car registrations in 28 European countries, nearly twice that of last year and neck-and-neck with Mercedes-Benz.