Tesla’s car registrations in the UK experienced a significant decline of 29% year-on-year in December, according to industry data. The US electric vehicle manufacturer, led by Elon Musk, recorded 6,323 registrations in the UK last month, as revealed by New AutoMotive data. This drop reflects the intense competition Tesla faces from Chinese rivals in its largest European market. For the entire year of 2025, Tesla’s UK sales fell by 8.9% compared to the previous year.
The decline in Tesla’s sales is not unique to the UK, as the company has faced similar trends in other European markets. Factors contributing to this decrease include competition, an ageing lineup, and Musk’s political stance in Europe. In contrast, Chinese rival BYD saw a substantial increase in UK car registrations, with a nearly fivefold jump to 5,194 units in December. Despite this, Tesla maintained its position as the best-selling electric car brand in Britain, although BYD is rapidly closing the gap.
In a related development, Tesla’s global sales have also been impacted, with the company losing its title as the world’s top EV maker to BYD. This follows Tesla’s report of annual sales that fell for the second consecutive year. Additionally, the company’s registrations in the Netherlands declined by 27% to 4,300 vehicles in December, according to data from car industry RAI Vereniging.
Britain’s overall car registrations, however, showed a 3.5% increase in 2025, reaching 2 million units for the first time since the pandemic. Two Chinese brands, SAIC’s MG and BYD, ranked among the top 10 best-selling car brands in Britain in December. The growth of Chinese brands in the UK market highlights the increasing competition faced by established manufacturers like Tesla.
The decline in Tesla’s sales in the UK and other European markets underscores the challenges the company faces in maintaining its market share. As the electric vehicle market continues to evolve, Tesla will need to adapt to changing consumer preferences and increasing competition from Chinese rivals. The company’s ability to respond to these challenges will be crucial in determining its future success in the European market.
