Tesla’s grip on the UK electric vehicle market weakened sharply in December, with registrations falling more than 29% year-on-year, highlighting mounting pressure
from fast-growing Chinese rivals in one of the company’s most important European markets.
The Elon Musk-led carmaker registered 6,323 vehicles in the UK last month, according to figures from New AutoMotive, which tracks industry data. For the full year 2025, Tesla’s UK registrations — a proxy for sales — declined 8.9% compared with the previous year.
The downturn mirrors a broader pattern across Europe, where Tesla has been losing momentum amid intensifying competition, an ageing model lineup and growing scrutiny of Musk’s political views in the region.
By contrast, Chinese automaker BYD continued its rapid expansion in Britain, with registrations jumping almost five-fold to 5,194 vehicles in December alone.
Despite the setback, Tesla remained the UK’s best-selling electric car brand, New AutoMotive data showed, though the gap is narrowing as BYD and other Chinese manufacturers accelerate their push into the market.
Globally, Tesla recently lost its status as the world’s largest EV maker to BYD after reporting annual sales declines for a second consecutive year.
Pressure was also evident elsewhere in Europe. In the Netherlands, Tesla registrations dropped 27% year-on-year to 4,300 vehicles in December, according to data released by industry body RAI Vereniging.
The broader UK car market, however, showed signs of recovery. New car registrations rose 3.5% in 2025 to around 2 million vehicles, marking the first time sales have reached that level since the pandemic, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
“Rising EV uptake is an undoubted positive, but the pace is still too slow and the cost to industry too high,” said Mike Hawes, SMMT’s chief executive.
Chinese brands are increasingly visible in the UK rankings. Two manufacturers made it into Britain’s top 10 best-selling car brands in December, with SAIC-owned MG taking second place and BYD ranking sixth, SMMT data showed. Photo by jurvetson (Steve Jurvetson), Wikimedia commons.