Tesla's UK sales slump by £500m as drivers refuse to buy Elon Musk’s electric car brand

These figures emerge as the company faces mounting pressure across European markets, where consumer sentiment towards the brand has shifted dramatically.

The company's pre-tax profits fell from £32.1million to £19.5million, marking a 40 per cent drop in financial performance. Net profits similarly declined from £23.6million to £12.7million for the financial year.

But Tesla's struggles have extended beyond the UK, with European performance showing even steeper declines.

Vehicle registrations across Europe tumbled by 32.6 per cent during the initial eight months of 2025, according to European Automobile Manufacturers' Association data.

August proved particularly challenging, with Tesla's European registrations dropping approximately 23 per cent year-on-year to 14,831 vehicles, down from 19,136 in August 2024.

Meanwhile, the company's European market share fell from two per cent to 1.2 per cent, while overall electric vehicle registrations in the region surged by 26 per cent during the same period, showing that drivers were simply choosing not to buy a Tesla.

The carmaker's owner, Mr Musk, has contributed to the brand's declining appeal amongst European and UK consumers due to his political position and views.

The billionaire entrepreneur endorsed Germany's far-right AfD party earlier this year and participated via video link in a UK anti-immigrant rally that resulted in violence.

The British gathering, organised by activist Tommy Robinson, saw 26 police officers injured. Prime Minister Keir Starmer condemned Musk's "dangerous" remarks at the event, where the Tesla founder told participants "violence is coming to you" and "you either fight back or you die".

Industry analysts suggested that these controversial political stances have alienated potential electric vehicle purchasers and negatively impacted the car brand.

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While Tesla sales slump, one of its main competitors, Chinese manufacturer BYD, has surpassed the brand in European Union sales for two consecutive months, with August data showing BYD's registrations soared by 201.3 per cent. This is compared to Tesla sales, which plummeted by 36.6 per cent.

The Chinese company now commands 1.3 per cent of the EU market compared to Tesla's diminished 1.2 per cent share.

Other Chinese manufacturers are similarly gaining ground, with SAIC Motor's MG brand recording a 59.4 per cent sales increase in August. The company has secured 1.9 per cent of the year-to-date market share, positioning it as the 10th largest seller in the bloc.

The competitive landscape has shifted dramatically as established manufacturers like Volkswagen and Renault posted year-on-year registration increases of 4.8 per cent and 7.8 per cent respectively, further pressuring Tesla's market position.

Tesla has indicated that a more affordable vehicle model is under development, potentially helping the company counter intensifying competition from established manufacturers and emerging Chinese brands.

In August, Mr Musk announced plans for Tesla to introduce a new electric car, the Tesla Model YL, across the Chinese market in a bid to regain the monopoly on EVs.

Despite the challenging trading conditions, the company's UK directors expressed confidence in future prospects, stating that they expect adequate resources to continue operations for at least 12 months following the approval of the financial statement.

The broader European electric vehicle market continues expanding rapidly, with battery electric, hybrid and plug-in hybrid vehicles collectively accounting for 62.2 per cent of EU registrations in August, up from 52.8 per cent a year earlier.