BYD surges in UK EV market as Tesla sales plummet 60%

Tesla’s electric vehicle sales in the UK plummeted by a dramatic 60% last month, marking a significant reversal for the US carmaker amidst a broader slump in European demand.

In stark contrast, Chinese rival BYD experienced a powerful surge, with its registrations increasing more than fourfold year-on-year.

According to figures released by the UK’s Society of Motor Manufacturers and Traders (SMMT), only 987 Tesla vehicles were registered in July, a sharp decline from 2,462 in the same month last year. This considerable drop follows a 14% year-on-year increase for Tesla in June, highlighting the volatility faced by the company.

The decline in Tesla’s sales across major European markets this year is attributed to a consumer backlash against Elon Musk’s political activism and intensified competition from rival manufacturers. Official industry data also showed significant drops for Tesla in other European nations, with registrations falling 86% in Sweden, 27% in France and 58% in Belgium.

Meanwhile, BYD’s registrations in the UK soared to 3,184 units in July, underscoring its growing presence and aggressive challenge to established EV players.

Tesla’s struggles come despite the recent release of an upgraded version of its flagship Model Y SUV. The company’s board also recently approved a new pay package for CEO Elon Musk, valued at 96 million new shares, explicitly aimed at “energising and focusing” the billionaire on reviving the carmaker’s flagging performance.

This compensation move follows a protracted legal battle over a previous $56 billion pay award that was struck down by a Delaware judge.

The broader UK car market also saw a modest decline in July, with overall registrations down 5% year-on-year. This slowdown has been partly linked to consumer uncertainty surrounding the government’s new EV subsidy scheme, which has yet to confirm full model eligibility for grants of up to £3,750. However, BYD’s impressive growth stands out against this backdrop, signaling a significant shift in the competitive landscape of the electric vehicle market.