Tesla stays the UK’s best-selling electric car in 2025 even as registrations fall 30%. Learn why and what’s next.
New‑car registrations for Tesla in the United Kingdom slipped by more than 29% in December 2025 compared with the same month last year, according to data from New AutoMotive. The figure dropped to 6,323 newly‑registered Teslas, marking an 8.9% decline for the full year.
Intense competition squeezes Tesla’s numbers
The slowdown mirrors trends seen in other major European markets such as France and Sweden, where Tesla faces fierce competition from newer models, a perceived aging product line, and the fallout from CEO Elon Musk’s political statements.
Chinese rival BYD accelerates in the UK
While Tesla’s registrations fell, Chinese automaker BYD saw its UK numbers surge almost five‑fold to 5,194 units in December. Despite BYD’s rapid growth, Tesla retained its position as the best‑selling electric‑vehicle brand in the UK for the month.
Global reshuffle: BYD overtakes Tesla worldwide
On the worldwide stage, BYD has now eclipsed Tesla as the largest EV manufacturer, helped by Tesla’s second consecutive year of declining sales, the expiry of U.S. tax incentives, and a wave of negative brand perception.
Overall UK market remains upbeat
Contrary to the EV‑specific dip, total new‑car registrations in the UK rose by 3.5% in 2025, reaching 2 million units—the first time this milestone has been hit since the COVID‑19 pandemic. The Society of Motor Manufacturers and Traders (SMMT) attributes the growth to a steady increase in electric‑vehicle adoption.
Industry perspective
Mike Hawes, chief executive of the SMMT, warned that “the pace of EV uptake remains too slow and costs are still too high.” He called for a bolder strategy from American manufacturers to counter the rapid expansion of Chinese rivals.
As the UK accelerates toward its net‑zero targets, the clash between legacy EV leaders and emerging Chinese brands is set to shape the next chapter of the country’s automotive landscape.